‘ Perfect storm’ leads to a house pricing record
HOUSE prices hit a record high last month, figures revealed yesterday.
An ordinary three- bedroom semidetached home now costs more than £ 245,000 for the first time, it was said.
The price of an average home hit £ 245,747 in August, 5.2 per cent higher than the same month last year and 1.6 per cent up month on month, according to the figures from Halifax.
The rise has been driven by a “perfect storm” of market conditions, property experts said.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The perfect storm of pent- up demand, lockdown prompting a desire for bigger homes and the cut to stamp duty has created a strong surge in market activity, which has carried on into this month. The demand for mortgages continues to be strong as borrowers take advantage of some competitively priced deals, particularly those with big deposits to put down.
“For first- time buyers, the situation is trickier, with less choice of high loan- tovalue products, and advice is more crucial than ever.” Islay Robinson, chief executive of Enness Global Mortgages, said: “Record low rates and the additional carrot of a stamp duty reprieve have caused buyer demand levels to increase at a rapid pace.
“With those securing a mortgage currently able to do so at such favourable rates, many are borrowing that little bit extra to either buy bigger or in a better area.”
Russell Galley, managing director of Halifax, said: “A surge in market activity has driven up house prices through the post- lockdown summer period.
“Notwithstanding the various positive factors supporting the market in the short term, it remains highly unlikely that this level of price inflation will be sustained.
“The macroeconomic picture should become clearer over the next few months as Government support measures end, and the true impact of the pandemic on the labour market becomes apparent.”