UK housing prices in April: the largest monthly rise in 17 years
Housing prices are showing no signs of cooling down. On Friday, new data showed that since February 2004, the most considerable increase in average UK house prices occurred in April 2021.
Home price growth per year rebounded to 7.1% in April compared to 5.7% in March. The median price was at £238,831 in April, 2.1% higher from March, as reported by Joanna Bourke for the Evening Standard. Over the past year, prices are now up £15,916.
Nationwide’s data covers the month following Chancellor Rishi Sunak's budget package to support buyers. A new mortgage guarantee scheme to help people with a 5% deposit to get on the property ladder was also announced.Demand for property increased as people reassessed their housing needs during the lockdown.
Chief Economist at Nationwide, Robert Gardner, said, “Housing market activity is likely to remain fairly buoyant over the next six months as a result of the stamp duty extension and additional support for the labor market included in the Budget, especially given continued low borrowing costs and with many people still motivated to move as a result of changing housing preferences in the wake of the pandemic.”
Conversely, he cautions that the market’s outlook may face uncertainty further ahead. If the employment rate falls drastically by the end of this year, as most analysts already expect, perhaps a sharp slow in activity will occur.
Jeremy Leaf, A former RICS residential chairman and north London estate agent, said, “This economic recovery is giving an additional boost to housing market activity rather than the housing market supporting the economy, which was the case when the pandemic first struck.”
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