Property prices rose 2.1% in April to £327,797
Property prices in the UK rose to record highs this month on a surge in activity after the government launched a mortgage guarantee scheme to help people with small savings.
Online property portal Rightmove confirmed that the average asking price for properties rose by 2.1% in April to a record high of £327,797, an increase of £6,733 on the previous month.
The move comes as a result of a lack of properties on the market while many families are looking to purchase larger properties to more comfortably work from home.
Many sellers have delayed sales until vaccinations are complete, leading to further supply shortages.
As of Monday, banks and building associations will start offering mortgages covering 95% of the purchase price under the government’s guarantee scheme. As revealed in the March Budget, lenders will be allowed to buy guarantees on between 80% and 95% of mortgages. If a borrower is unable to repay and falls into financial difficulty, the government will compensate for the loss on the debt.
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Ross Counsell, Chartered Surveyor and Director at GoodMove, commented on today’s Rightmove HPI:
“The latest Right Move House Price Index figures show that the average property price in the UK rose by 2.1% on last month to a record high of £327,797,” Mr Counsell said.
“The Rightmove HPI also shows that while many new properties came on the market this month, it was still not enough to meet buyer demand.In fact, the average number of days it takes to sell has reached its lowest level on record. It’s a great time for those looking to sell their homes quickly, and it points to some challenges for buyers struggling to find the right property.”
“This spike is not necessarily surprising given the stamp duty holiday has been extended until the end of June, but it does signal the question of what will happen beyond June.”
“Looking ahead, we expect the property market to continue to grow in the first half of 2021. However, the situation in the property market remains uncertain even after the end of the stamp duty holiday. We expect housing prices and demand to ease, resulting in a slowdown in the housing market.”
