15 Oct 2020
According to the latest reports, the UK’s house prices increased by 1.6% in September from August. In addition, Nationwide conveyed that prices are 0.9% higher in October, and could go up to 7.3% annually.
Researchers said, “The average UK house price is now approaching £250,000 after September saw a third consecutive month of substantial gains. The annual rate of change will naturally draw attention, with the increase of 7.3% the strongest since mid-2016. Context is important with the annual comparison, however, as September 2019 saw political uncertainty weigh on the market.”
It was pointed out that ‘Few would dispute that the performance of the housing market has been extremely strong since lockdown restrictions began to ease in May. Across the last three months, we have received more mortgage applications from” both first time buyers and home movers than at any time since 2008.”
The pandemic has encouraged people to work from home and seek bigger homes with more space. The writers of the report said that the pandemic will eventually impact the housing market.
“It is highly unlikely that the housing market will continue to remain immune to the economic impact of the pandemic. The release of pent up demand and indeed the stamp duty holiday can only be temporary fillips and their impact will inevitably start to wane. And as employment support measures are gradually scaled back beyond the end of October, the spectre of increased unemployment over the winter will come into sharper relief.”