Record high for UK house prices

September 10, 2020 by Alan

House Prices

The most recent House Price Index put together by Nationwide shows that the average price of a home in the UK has hit its highest level in over a decade and a half.

This index reveals that house prices across the UK enjoyed a rise of 2% during August, once external factors such as the time of year had been accounted for, which represents the biggest month-on-month increase in prices since February 2004. Nationwide also stated that the annual growth in the price of houses in the UK shot up to 3.7% during last month, compared with the 1.5% figure for July.

Whereas the average price of a house in July was £220,935, by the end of August it had risen to £224,123. Speaking to FT Adviser, Nationwide’s chief economist Robert Gardner noted:

“House prices have now reversed the losses recorded in May and June and are at a new all-time high. The bounce back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.”

He went on to suggest that the experience of lockdown may have contributed to this, by causing people to think again about what they want and need from a house while they were forced to spend more time than they usually would in their homes.

Whatever is causing the rise in house prices, the quick return to transactions following the end of lockdown shows why so many people want to do CeMAP courses and become mortgage advisors.