Nationwide House Price Index latest set of figures show a continued rise in the prices of property.
In August house prices across the UK rose by 2% and 3.7% year on year, with the average price of a house now standing at £224,123. This is the highest it has risen since February 2004. These figures are of no surprise because the up demand that has been unleashed on all of us, excited by stamp duty holiday.
However, as strong as the property market is right now, it may not last.
After lockdown demand is understandably strong and the added bonus of the stamp duty holiday, however, unemployment is rising day by day and the economic outlook is highly uncertain as the furlough scheme comes to an end.
In the final few months of the year we may start to see a reverse in the current rate of house price growth, as the true impact of Covid-19 on the economy shows.
What are also seeing a huge amount of people looking for a second property or holiday home. The Stamp Duty holiday has also spurred more landlords into action, , while mortgage rates in this sector of the market have never been as cheap.
For first time buyers, sadly, the stamp duty holiday is largely academic as not all lenders are able to provide the mortgage finance. If lenders can improve on this, it will provide additional support to the market.
What is clear though, is that the next 4-6 weeks will prove to be the most important part of the year, not just for the housing market.