UK House Prices Rise Defy Covid

UK house prices rose at the fastest pace in four years in September despite the raging coronavirus pandemic as people working from home sought more space, according to the Halifax house price index. House prices grew 1.6 per cent month on month in September after climbing by the same amount in August. The rise took the average price to a new record high of £249,870. Properties were worth 7.3 per cent more on average than they were a year earlier, the biggest year-on-year rise since June 2016. However, Halifax said the annualised figure was flattering because the property market was subdued a year ago due to worries over Brexit. It is highly unlikely that the housing market will continue to remain immune to the economic impact of the pandemic. The stamp duty holiday is incentivising vendors and buyers to close deals at pace before the break ends next March. However, it is expected that housing market activity will gradually improve over the second half of 2021. Very low borrowing costs should also help matters with the Bank of England unlikely to lift interest rates from 0.10% during 2021.