After the biggest monthly increase in 14 years, UK house prices hit a “record” high.
Following September’s increase, the average UK house price reached a new high of £267,587, the highest monthly increase since February 2007.
The average cost of a UK home reached a new high in September, thanks to a massive increase in property prices.
Last month, the Halifax House Price Index increased by 1.7 percent, or more than £4,400, bringing the average price of a UK home to £267,587.
The monthly increase was the most significant since February 2007, bringing the year-over-year increase to 7.4%.
The government’s stamp duty holiday has encouraged buyers to complete their housing transactions throughout the pandemic.
House purchases up to £500,000 made between 8 July 2020 and 30 June 2021 were exempt from stamp duty, with the first £250,000 of a purchase price being exempt from stamp duty from 1 July to 30 September this year.
The rates have now returned to pre-pandemic levels, which means that only the first £125,000 is subject to a zero rate.
The stamp duty holiday, according to Halifax’s Russell Galley, was not the only reason for the rush of purchases.
“While the end of the stamp duty holiday in England – and a desire among homebuyers to close deals quickly – may have influenced these figures, it’s worth remembering that most mortgages agreed in September would not have been completed before the tax break expired,” he said.
“This demonstrates that a variety of factors influenced the rise and fall of house prices during the pandemic.”
“There is no doubt that the ‘race for space’ as people’s preferences and lifestyle choices changed had a significant impact.”
Mr Galley said flat prices had only risen by 6.1 percent (equivalent to £6,640), compared to 8.9 percent for semi-detached homes and 8.8 percent (equivalent to nearly £41,000) for detached homes.
While a record average price was reached, Henry Pryor, a housing market expert, tweeted that the “rate [of growth]is slowing.”
Experts believe that a number of factors, including rising living costs – particularly due to household energy bills – and the prospect of tax increases, such as National Insurance, could cause the housing market to cool.
UK news summary from Infosurhoy
House prices in the United Kingdom have reached a’record’ high following the largest monthly increase in 14 years.