Wednesday 06 October 2021
British house prices rose by the most in almost 15 years in September ahead of the end of a tax break for house-buyers and they were expected to continue their climb to new record high levels according to Halifax.
Prices rose by 1.7% from August, the biggest month-on-month increase since February 2007. Halifax added that year-on-year house price growth was 7.4% in September, reversing a three-month downward trend.
Britain's housing market turned red hot after the lifting of the country's first coronavirus lockdown last year as people working more from home sought bigger properties and after finance minister Rishi Sunak cut a tax on home purchases.
Russell Galley, Halifax's managing director, advised that a shortage of homes for sale would remain the biggest factor for the market and would underpin prices into next year, even if the pace of price growth was likely to slow.
The bank’s monthly house price index shows the average property was valued at £267,587 in September 2021 – a 1.7% increase month-on-month in comparison with August’s average value of nearly £263,000.
Galley commented, “while the end of the stamp duty holiday in England and a desire among homebuyers to close deals at speed may have played a part in these figures, it’s important to remember that most mortgages agreed in September would not have completed before the tax break expired.”
“This shows that multiple factors, including the ‘race for space’, have played a significant role in house price developments during the pandemic.”
Miles Robinson, online mortgage broker at Trussle, said: “with so little housing stock across the country, it is likely that momentum will continue, and the market will remain active in the coming months.”