Rolling coverage of the latest economic and financial news
- UK house prices jumped 2.1% in August – second largest monthly gain in 15 years
- House prices rose 11% in last year
- Prices now 13% higher than when pandemic began
- Shop prices rise amid driver shortages and Brexit red tape
- Coming up: UK manufacturing PMI report, eurozone unemployment
August’s surge means the average house price rose by over £4,600 during the month (to £248,857, from £244,229 in July).
That’s significantly more than the average worker is paid during a month.
Instant Info – Nationwide House Price Index pic.twitter.com/OCwj3jWMsl
House prices jumped by nearly £5,000 month-on-month in August https://t.co/numzctChWa
Martin Beck, senior economic advisor to the EY ITEM Club, says some homebuyers were keen to take advantage of the smaller stamp duty savings still on offer in England and Northern Ireland:
“Although the temporary stamp duty saving introduced last year was decreased on 30 June, the nil-rate threshold will not return to the original £125,000 level until 1 October. So buyers lining up transactions and seeking to benefit from a lower tax bill before the October deadline may have supported demand and prices in August.
Consumer confidence has remained high and buyers have continued to benefit from ultra-low mortgage rates. Meanwhile, the pandemic has had what will likely be long-lasting effects on property preferences, including raising demand for larger homes in a world of more home working.
Combined with the fuel for property deposits provided by the substantial savings accumulated by some households during lockdowns, there are plenty of props supporting the housing market.
On measures such as the ratio of house prices to household incomes, affordability looks increasingly stretched.
And, despite a recovering economy, higher inflation and the prospect of some increase in unemployment when the furlough scheme ends means the outlook for household income growth is clouded. But the odds of a significant downturn in house prices anytime soon looks small.”
Continue reading...from The Guardian https://ift.tt/3t1qDYB
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