House prices hit a record high in August, according to the Halifax. That said, the annual rate of price growth continued to cool down, at just 7.1%.
Regionally, London is the laggard, according to the lender, with Wales leading from the front. Key takeaways:
- Average UK property price now £262,954, highest on record
- Annual house price inflation slows further to 7.1%
- Wales remains strongest region or nation, London continues to lag
Russell Galley, Managing Director, Halifax, said:
“Much of the impact from the stamp duty holiday has now left the market, as highlighted by the drop in industry transaction numbers compared to a year ago. However, while such Government schemes have provided vital stimulus, there have also been other significant drivers of house price inflation.
“We believe structural factors have driven record levels of buyer activity – such as the demand for more space amid greater home working. These trends look set to persist and the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax break comes to an end later this month.
“Moreover, the macroeconomic environment is becoming increasingly positive, with job vacancies at a record high and consumer confidence returning to pre-pandemic levels. Coupled with a supply of properties for sale that looks increasingly tight, and barring any reimposition of lockdown measures or a significant increase in unemployment as job support schemes are unwound later this year, these factors should continue to support prices in the near-term.”
The views of the Newspage community of property market experts are listed below.