Good Move: Mortgage applications high despite soaring prices
HM Land Registry: Property prices up 2.5% annually in August
Good Move: Mortgage applications high despite soaring prices
October 21, 2020
The residential market in Scotland is bubbling away as buyers escape the lockdown straitjacket, but is it also on the point of creating a price bubble?
October 21, 2020Property prices rose by 2.5% in the year to August 2020, according to HM Land Registry’s UK house price index.
As of August 2020, the average property price across the UK stood at £239,196, representing a 0.7% rise month-on-month.
England saw the greatest rise in house prices, noting an 2.8% uplift over the year to August.
Regionally, the East Midlands recorded the largest rise in house prices, with an increase of 3.6%; in contrast, the North West noted the lowest annual growth, with prices rising by 0.2%.
Marc von Grundherr, director of Benham and Reeves, said: “Explosive levels of buyer activity at the front of the sales process is continuing to yield a consistent increase where sold prices are concerned, albeit at a less headline-worthy rate of growth.
“Never the less, the UK property market is continuing to defy wider economic turmoil and build on the momentum seen since the market reopened.
“As the months have gone on, we have seen the green shoots of international demand start to return and it seems as though this is now aiding a house price revival in the capital.”
James Forrester, managing director of Barrows and Forrester, added: “More positive signs where house price growth is concerned but we are also seeing the market start to buckle under the weight of stamp duty fuelled activity and this could have repercussions over the next few months.
“If you are not yet in the midst of your property purchase, the chances are you will not complete in time to secure a stamp duty discount. As more homebuyers realise this is now the case, we should see the mad scramble of recent months start to reduce and market activity at the front end of the transaction process start to return to some level of normality.
“Of course, with so many purchases already stuck in the hopper, the UK property market has plenty of fuel to see it through the quieter winter months and so while activity might start to fall, it’s likely the rate of house price growth will remain strong over the remainder of the year.”
