According to the latest Halifax House Prices Index, April 2021 saw house prices 8.2% higher than the same month in 2020, also beating the previous record high in March 2021.
House Prices between March 2021 and April 2021 rose by 1.4% for the month with quarterly growth 0.9% higher than in the preceding 3 months.
Halifax managing director Russell Galley said: “As the market continued to maintain its recent momentum April’s house prices hit a record high. The average property price is now £258,204 and up 1.4% month on month and 8.2% annually. This is the highest annual growth in 5 years”
Mr Galley continues:Since April 2020 nearly £20,000 has been added to the average value of a home.
“The stamp duty holiday continues to drive a really active market and magnifies the current shortage on available homes with buyers taking advantage of the Government scheme. As the stamp duty holiday gradually fades over the next few months, low stock levels will taper out, low interest rates and continue demand is likely to continue to underpin prices in the market”.
“We do however expect level of activity to remain in the short term, as buyers have built up savings over the last 3 months and have more cash to invest in their dream home together with the new mortgage guarantee scheme easing deposit constraints for many prospective buyers who previously thought they would never get onto the housing ladder for a least a few more years”.
“As the vaccination programme continues there is growing optimism in the long-term outlook of the UK economy for the housing market, yet medium term we remain cautious as we said in March, the current levels of uncertainty together with the furlough scheme coming to an end it leaves the potential for higher unemployment and house price growth will slow to the end of the year”.
This is a really strong bubble but we fear for the worst when the stamp duty holiday ends.