‘False dawn’ warning despite July rebound in house prices

 House prices rebounded last month and will be further boosted following the Chancellor’s stamp duty holiday announcement, writes Harry Brennan.

However, analysts have called the uptick a “false dawn” and warned of steep falls later in the year.

Prices were up 1.5pc for the year, growing 1.7pc since June, when they were down 1.6pc, according to figures from the building society Nationwide.

The cost of an average home now stands at £220,936, up from £216,403 in June.

Rishi Sunak’s stamp duty holiday exempts property transactions of up to £500,000 from the charge until the end of March 2021.

The improvement in buying activity can also be explained by people reassessing their housing needs and where they want to live during the recent lockdown.

The prevalence of home working has freed many from having to live close to their place of work.