House price boom is ‘in full swing’, says AJ Bell analyst
House prices in April increased by 1.4% on a monthly basis compared to March.
According to the House Price Index, house prices rose by 0.9% in the most recent quarter from February to April compared to the previous three months (November to January).
House prices rose 8.2% in April compared to the same month in 2020.
UK house prices rose at the fastest pace in more than 15 years in April, according to Nationwide research.
Home prices in April surpassed the previous month’s all-time high as the housing market continued its recent momentum.
– Advertisement –
Rais Khalaf, financial analyst at AJ Bell, commented on the numbers:
“The house price boom remains in full swing as white line fever brings buyers into the market taking advantage of the recently extended stamp duty holiday. Mortgage approval numbers have retreated in recent months. , suggesting that bubbles may be emerging from the top of the market. However, with the summer busy season approaching, there are plenty of tailwinds that could help keep prices rising.
Mr. Khalaf also pointed to the various supports provided by the government in addition to the accumulated savings as people stayed at home during the pandemic.
“While the stamp duty holiday will be phased out by the end of September, borrowing costs remain low and the government continues to provide support in the form of the Help to Buy and Mortgage Guarantee schemes. We also know that many are building up a war chest that will help them weather the pandemic and trade the real estate market, perhaps to get additional space for a home office.”
Russell Galley, Managing Director of Halifax, said:
“Average property prices are now £258,204, up 1.4% month-on-month and 8.2% annualized, the highest annual growth rate in five years. The market effectively came to a standstill in April 2020. Since then, the average home has added about £20,000 to its value in cash terms.
“The stamp duty holiday continues to fuel a very active market, with the current shortage of available homes becoming even more acute as buyers look to take advantage of the government scheme. Stamp Duty Holiday The impact will likely wane over the coming months, but low inventory levels, low interest rates and continued demand are likely to continue supporting market prices.
