New figures published by Home show that the average price of a house in the UK has undergone its biggest rise in over six years, with several factors likely to be responsible for this.
The property search website’s Asking Price Index for July shows that the average UK house price has gone up by 1.5%, which is the biggest increase since early 2014. It indicates that those looking to sell their homes are in a confident mood following the end of the Covid-19 lockdown, with low levels of housing stock and pent-up demand among buyers both being significant drivers of the rise in pricing.
Yorkshire and the North West are the two areas where seller confidence is most apparent, with house prices in these regions rising by 2.7% and 1.9% respectively compared with the month before. However, the Asking Price Index shows an increase in prices throughout the UK, with every region of England, as well as Wales and Scotland, experiencing month-on-month rises of more than 1%.
Although housing supply is beginning to return to normal, demand outstripping supply is undoubtedly a big reason for the spike in prices, with the total housing inventory still being lower by 12% than this time last year. In addition, the raising of the Stamp Duty threshold on property sales is almost certainly another contributory factor.
Mortgage advisors who have pursued CeMAP courses will be encouraged by this news but will also be hoping for a fast restoration of housing supply.