According to Halifax’s recent data the average price of a UK house currently stands at £261,742 up 1.3% on the month and bringing annual house price growth to a record 9.5%. There are various factors that have contributed to this rise in property prices. The question everybody is asking: will it continue or has it reached its peak?
The effects of lockdown
Working from home has had a two-fold impact on the property market. Homeowners having spent considerable time in their properties throughout 2020 by working from home and often homeschooling too have determined their homes no longer fits their lifestyles. The lack of travelling for both business and leisure has also afforded an unforeseen increase in savings.
As lockdown has lifted, the way we work and where we need to live has also changed. Many house hunters wanting to upgrade to a more spacious property now have the option of a wider geographical area and often with the extra deposit to match.
Russell Galley, Managing Director of Halifax comments, “These trends, coupled with growing confidence in a more rapid recovery in economic activity, if restrictions continue to be eased, are likely to support house prices for some time to come, particularly given the continued shortage of properties for sale.”
House prices around the country
Our North West region saw double-digit annual growth over the past year, the biggest percentage increase since April 2005 and matched by the Yorkshire & Humber region.
Given the desire to move to larger properties with outside space, London and the South East have not fared as well, seeing a modest increase of 3.1% over the same period, though this is on top of continued growth over a number of years.
Help for first time buyers
Normally a significant increase in house prices would be disastrous news for younger people and those looking to get on the property ladder. However the Government backed 95% mortgage deals and continued low interest rates, have ensured there is demand for properties across all price scales.
Have house prices peaked?
Brad Pearce, our Property Department Manager & Valuer for our Ulverston & Grange offices, explains, ‘It’s a sellers market at the moment. Some of the more premium homes in our area have received offers before we’ve had the opportunity to market as house-hunters rush to beat the stamp duty holidays ending in June and September. We don’t see that changing any time soon, so if you’re thinking of selling there is no better time to contact our team.’