According to data from the mortgage lender Nationwide, the price last month was £248,857, which is now about 13% higher than when the pandemic began.
The August figure was 2.1% higher than the previous month and 11% higher than the record recorded in August last year, when the market was boosted by the government to allow the first £500,000 tax exemption on the property.
The tax reduction will be reduced from July 2021, and the threshold for stamp duty holidays is £250,000 until September 30.
Robert Gardner, chief economist at Nationwide, said: “The price recovery in August was surprising because the UK stamp duty relief seems more likely to cool the market by the end of June.”
Gardner pointed out that those who are still taking advantage of the less generous stamp duty holidays may have strong demand. He also said that insufficient market supply may also lead to the rise last month.
He said: “Potential demand may remain stable in the short term. Consumer confidence has rebounded in recent months, while borrowing costs remain low.”
But Gardner warned: “When we look to the end of the year, the outlook is more difficult to predict. In the period after the stamp duty holiday at the end of September, activity will almost inevitably weaken. In addition, if the unemployment rate rises, potential demand may be Weakened around the end of the year.”
Mark Harris, CEO of SPF Private Clients, a mortgage broker, said: “As we enter the fall, we now expect more of the same situation. As lenders lower the interest rate on loan-to-value ratios, not just those deposits The most people, first-time homebuyers and movers have opportunities.”
Anthony Codling of Twindig, a real estate analyst firm, said: “However, the strong house price performance in August may be the last cheer before the end of the stamp duty holiday…However, house prices have always been stronger than we thought in the eyes of the pandemic. When we start to forget about the storm of the pandemic, it will be a brave person who will bet on them.”
