HOUSE prices leapt again in September growing at their fastest rate in fours years, new figures show.
Prices increased by 5% in September compared to the same month last year as the end of the coronavirus lockdown and stamp duty relief boosted buying.
That’s the biggest yearly rise in September since 2016 according to new figures from building society Nationwide’s house price index.
House prices increased by 0.9% compared to the previous month of August taking into account seasonal factors.
The average house price was £226,129 in September – just over £2,000 more than in August
The new figures signal continued momentum in the housing market which had been lifted by the stamp duty holiday introduced by chancellor Rishi Sunak over the summer.
House sales were paused at the height of the pandemic and the tax cut was designed to boost homebuying.
Robert Gardner, Nationwide’s chief economist said: “Housing market activity has recovered strongly in recent months.”
“The rebound reflects a number of factors. Pent-up demand is coming through, with decisions taken to move before lockdown now progressing.
“The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown.”
House prices increased in all areas of the UK in the three months of July, August and September.
The largest rises were seen in the south west (5.5%), outer London (5%) and the south east outside of London (4.8%).
Nationwide last month said that the average UK house price increase by 2%, the largest rise in a single month in 16 years.
Separate data from the Bank of England yesterday showed mortgage approvals surged last month.
There were 84,700 loans approved in August for buying a home compared to 66,000 in July
Leading economists predict house prices will start to fall “significantly” by the end of the year and in the first half of 2021.
House prices have soared since the coronavirus lockdown was eased but it’s left many buyers and sellers wondering if it will last – here’s what the expert says.
Homeowners are being stung by hidden property costs that often leave them thousands of pounds out of pocket.
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