Property prices hit new high

Property prices hit a new record high in the year to August 2020 according to data from the Halifax Building Society with prices soaring by 5.2 per cent as the market shrugged off COVID fears.

 

A typical home now costs £12,206 more than it did a year ago with the surge in the market taking the average selling price of a home to £245,747 which as been coupled with the strongest rate of growth since late 2016.

 

Surging prices have contradicted many early predictions of a market crash following Covid-19 economic havoc. The Halifax Managing Director, Mr Russell Galley, said that the buying frenzy had been spurred by pent-up demand from whilst the market was shut, plus a post-lockdown push for larger homes, and the temporary stamp duty cut imposed by the Chancellor.

 

However, the house price index report warned it was highly unlikely current levels of price growth would continue. Most experts believe the rise is only short term, and are braced for turbulence in the housing market in the coming months when the stamp duty holiday ends and the taxpayer-funded furlough programme stops. 

 

With earnings potentially under pressure courtesy of the repercussions of the Covid pandemic, and possible future redundancies being affected by the cessation of the furlough scheme warnings have been made that prices could fall towards the end of 2020 and the beginning of 2021. 

 

Mr Galley commented that, "It remains highly unlikely that this level of price inflation will be sustained." Of course there is the possibility that it might. 

 

E&K Solicitors

Rusholme