Demand pushes home prices up, spike short-lived

01 Oct 2020

British house prices have escalated and are expected to continue rising by 14% between August and November 2020, pushing the annual growth forecast to 11.4% in October and 14% for the following month. 

“Buyers are determined to make their move now, despite the fact that the current spike in prices will in many cases wipe out the stamp duty savings,” Rob Houghton, CEO of reallymoving said. 

He continued, "For those higher up the ladder with secure finances, a healthy level of equity in their property and little other debt, gloomy economic forecasts are only encouraging them to press ahead with the move rather than sit tight and wait out what could be a long and painful recession.”

House prices went from £316,753 in July 2020 to a projected £336,946 in November 2020 on average. The strong demand in the market boosted conveyancing quotes by 55% throughout summer. Exerts claim that the spike will return to its normal levels by the second quarter of the coming year. “We anticipate that this boom will be relatively short-lived.”

“More than ever people’s homes are their castles and their offices – and with borrowing costs likely to be rock bottom for the foreseeable future, paying over the odds on a purchase isn’t too painful if you’re also getting over the odds on your sale and making a stamp duty saving.”

Houghton elaborated on the reasons for the spike being short-lived. "With the end of the furlough scheme around the corner and the prospect of further lockdowns on the horizon, not to mention the growing likelihood of a No Deal Brexit, demand is likely to drop off through the late autumn and winter, reversing the current spike in house prices.”