Halifax: Annual home prices increased 6%
The extension of the Stamp Duty Holiday has helped increase prices.
Halifax found that home prices had risen 1.1% between February and March 2021 and are now 6.5% higher than in March 2020.
Ross Counsell, Chartered Surveyor and Director of GoodMove commented:
“According to the latest figures from the Halifax House Price Index, median house prices in the UK are on the rise again, rising 1.1% in March compared to February, currently standing at £ 254,606. Not only is this 6.5% higher than the same time last year, but median home prices are now at a whole new record.”
“Although it was initially a slower start to the year, it appears that the extension of the Stamp Duty Holiday has resulted in another increase in demand for properties very similar to what we saw in 2020. Additionally, as restrictions begin to ease in the next few months, no “I don’t expect the housing market to slow down anytime soon.”
“Ultimately, while the future of the housing market beyond the Stamp Duty Holiday remains uncertain throughout 2021, given the extension to the end of June, we expect to see another housing market boom in the first half of this year.”
The property market still relies heavily on government help.
Andy Sommerville, Director of Search Acumen, said: “This latest data shows that the housing market is still receptive to government stimulus measures.”
“The increase in house prices over the last month can be attributed in part to the improvement in consumer confidence in the housing market, caused by the extension of the Stamp Duty Holiday.”
“Despite a large proportion of homebuyers already rushing to complete transactions before the first Stamp Duty holiday deadline earlier in the year, new buyers continue to enter the market to capture the potential financial benefits on offer from the highest threshold. Consumers who have accumulated high levels of savings over the course of the pandemic are likely also supporting the tailwinds in the market, using these reserves as deposits for the purchase of homes.”
“Prices are likely to continue an uptrend in April, due to the confirmation of the extension of the Stamp Duty holiday and the improvement in consumer confidence levels as a result of the successful launch of the vaccine and the reopening of the UK. However, in the medium term, the second stage of this Stamp Duty holiday will not have the same impact on house prices as the first stage.”
“While we are likely to see fewer transactions, the backlog of properties pending completion has yet to be resolved. A key part of accomplishing this will be providing real estate attorneys with digital tools to leverage property data that is crucial to the progress of transactions. By allowing them to reduce the time spent on due diligence processes, attorneys will be free to provide value-added advisory services to clients that will help those complete transactions sooner.”
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