Housing boom after the crash

PROPERTY PRICES HIT NEW ALL-TIME HIGH

THE coronavirus hit housing market has bounced back - with prices rising at the fastest rate for 16 years.

The average home rose 2% in value between July and August – more than £100 a day, said the Nationwide Building Society. It took the average to a record £224,123.

On an annual basis, prices were 3.7% higher last month, more than double the 1.5% year-on-year rise in July.

Robert Gardner, the Nationwide’s chief economist, said: “House prices have now reversed the losses recorded in May and June and are at a new all-time high. The bounceback reflects the unexpectedly rapid recovery in housing activity since the easing of lockdown restrictions.”

Nationwide said the rebound reflected pent-up demand and people moving because of “behavioural shifts”. It also predicted the stamp duty holiday would boost sales.

Office for National Statistics data out yesterday showed the average house price in England rose 2.9% to £252,000 in the past year, by 2.1% to £155,000 in Scotland, but by 3.8% to £141,000 in Northern Ireland, and by 4.8% to £169,000 in Wales. However, there are warnings recovery could be short-lived if the ending of coronavirus crisis aid, including the furlough scheme, triggers big job losses. Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Many people didn’t go on holiday and stayed home and bought property instead.” Jeremy Leaf, a North London estate agent, said: “We see no signs of activity easing off.”