UK House Price Hit Record High

Over the past few months, the UK housing market has gained steam with a surge of activity. This has led the average UK house price to hit £250,456, a new record high, according to the recent house price update from Halifax. Th

BY Realty Plus
Published - Tuesday, 17 Nov, 2020

Over the past few months, the UK housing market has gained steam with a surge of activity. This has led the average UK house price to hit £250,456, a new record high, according to the recent house price update from Halifax. The latest quarter, from August to October, saw house prices rise 4% higher than the preceding quarter. Additionally, the average UK house price increased by 7.5% in October 2020 compared to the same month in 2019. This rise features the strongest growth since June 2016. The stamp duty holiday, which is currently in place until 31st March, has also been driving demand. Many prospective buyers have an eye on beating that deadline, in order to take advantage of significant savings. Until the March deadline, buyers only pay stamp duty above the £500,000 threshold on sales, and for second homes and investments, the 3% surcharge is only payable. Mortgage product numbers, which fell sharply in March, have also risen recently. This provides buyers with more mortgage options. Even though interest rates are rising, homebuyers still have time to secure the best deals if they act quickly. With many people spending more time at home and the increase in working from home, priorities are changing for what people want from their homes. And this second lockdown is expected to further secure people’s desire to move. Having high speed internet connectivity, a home office or more space are at the top of many buyer’s agendas. With the unprecedented demand for people to move house, property prices are likely to remain strong throughout the coming months as property sales remain at record levels. The latest market report from the Royal Institute for Chartered Surveyors (RICS) showed the UK housing market performed even stronger than predicted in October.