UK house prices rose at the fastest pace since 2004 due to the Stamp Duty Holiday

UK house prices grew relentlessly on the back of Stamp Duty Holiday.

UK house prices are growing at the fastest annual rate in 17 years, and all regions are on the mend, according to Britain’s largest building society, and Stamp Duty Holiday has much to do with.

The median home price in the UK increased 0.7% in June from May to £ 245,432, bringing the annual rate to 13.4%, marking the highest annual growth rate since November 2004, he said. Nationwide Building Society in its monthly report.

Britain’s housing market has been boosted by the extension of Stamp Duty Holiday for home buyers and a departure from big cities like London, with moves seeking more space and leafier locations after the experience from working from home during the Covid-19 pandemic.

UK house prices have broken all historical levels.

Robert Gardner, the chief economist at Nationwide, said: “While the strength is partly due to base effects, with June last year unusually weak due to the first lockdown, the market continues to show significant momentum. The third consecutive monthly rise was recorded in June, after taking into account seasonal effects. Prices in June were almost 5% higher than in March.”

Northern Ireland and Wales posted the most significant gains in the second quarter, with house price growth of 14% and 13.4%, respectively. Scotland posted the lowest house price growth at 7.1%, closely followed by London at 7.3%.

The outer metropolitan region around the capital, including commuter cities such as Luton, Watford, Sevenoaks, and Woking, posted an 8.2% annual growth.

The outer southeast region, which includes Brighton and Hove, Oxford, Winchester, and Southampton, posted gains of 10.9%, the first time the area has posted double-digit growth since 2014. In the southwest, the price of Housing growth reached its highest level since 2010, with prices rising 10.4% year-on-year.

Despite record home prices, Gardner said, typical mortgage payments are not high by historical standards compared to net income because mortgage rates remain near historic lows, with the Bank of England base rate at 0.1%.

However, first-time buyers continue to struggle to save enough for a deposit, as home prices are near a record high relative to median income. A 10% deposit is more than 50% of a typical first-time buyer’s payment. A potential buyer who earns the average salary and saves 15% of the net salary would take five years to collect a 10% deposit.

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