Property prices at record high post-pandemic

Property prices are rocketing UK-wide in the post-lockdown period to a record high-however experts have warned that the increases could be short-lived, as the financial effects of the pandemic take hold.

UK average property prices rose by 1.6 per cent on a monthly basis, according to the figures from Halifax, taking annual growth to 5.2 per cent - its strongest level since late 2016, with the average price of a property tipping over £245,000 for the first time on record.

The report is published as communities in the Highlands and islands warned that they are being priced out of their local area amid growing demand for rural homes in the wake of the pandemic.

In an open letter from a group including crofters, development officers and Gaelic campaigners, islanders warned of an “economic clearance” in the rural communities.

They said that 40 per cent of housing stock on both Tiree in the Inner Hebrides and West Harris in the Western Isles were holiday homes and that, combined with a rise in the number of people across the UK looking to relocate to the Highlands and Islands, was pushing prices higher.

Russell Galley, managing director of Halifax, said: “A surge in market activity has driven up house prices through the post-lockdowns u mm er period, fuel led by the release of pent-up demand, a strong desire amongst some buyers to move to bigger proper ties, and of course the temporary cut to stamp duty.”