Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK house prices rise by most since 2014 - Halifax

Published 07/06/2021, 08:42
Updated 07/06/2021, 09:11
© Reuters. FILE PHOTO:  An estate agent board is displayed outside a property in London, Britain July 7, 2017. REUTERS/Neil Hall/File photo

© Reuters. FILE PHOTO: An estate agent board is displayed outside a property in London, Britain July 7, 2017. REUTERS/Neil Hall/File photo

By David Milliken

LONDON (Reuters) - British house prices in May were 9.5% higher than a year earlier, their biggest annual increase since June 2014, adding to signs of a boom in the property market, figures from mortgage lender Halifax showed on Monday.

Britain's housing market has seen a sharp rise in sales and prices over the past year, thanks to a government tax incentive for movers and a jump in demand for more spacious properties from richer households able to work from home.

"Heading into the traditionally busy summer period, market activity continues to be boosted by the government's stamp duty holiday, with prospective buyers racing to complete purchases in time to benefit from the maximum tax break ahead of June's deadline," Halifax managing director Russell Galley said.

House prices in May were 1.3% higher than in April, when they rose by 1.5%. Economists polled by Reuters had on average forecast a 1.2% monthly increase and a 10.0% annual rise.

Other measures of house prices have also shown big increases. Britain's official house price index showed that house prices based on transactions completed in March were 10.2% higher than a year before, the biggest rise since August 2007.

Halifax said it expected upward pressure on house prices would outlive the stamp duty reduction, which will be phased out between July and October.

© Reuters. FILE PHOTO:  An estate agent board is displayed outside a property in London, Britain July 7, 2017. REUTERS/Neil Hall/File photo

"The current strength in house prices also points to a deeper and long-lasting change as buyer preferences shift in anticipation of new, post-pandemic lifestyles," Galley said.

"Greater demand for larger properties with more space might warrant an increased willingness to spend a higher proportion of income on housing," he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.