Figures released by the Nationwide Building Society show that house prices increased by almost £5,000 in August.
The monthly rise of 2.1 per cent is the second highest in the last 15 years and means the cost of the average home in the UK is now £248,857.
Despite expectations that house price inflation would ease after the threshold for paying stamp duty was reduced from £500,000 to £250,000 in July, year on year property inflation rose to 11 per cent in August, up from 10.5 per cent in the previous month.
Ben Furnell, Managing Director of Furnell Residential said there were a number of reasons why house prices are still on the rise. “There remains a serious lack of stock coming to market and in our experience that which does is selling quickly and often for more than the asking price. Buyers of homes below £250,000 have been keen to take advantage of the revised stamp duty threshold before it returns to its pre-Covid level of £125,000 in October.”
Ben continued: “Interest rates are also at a record low and those people who were evaluating their current property during the height of lockdown are still in the market for a home which gives them that extra space.
“In my opinion these factors, aligned with strengthening business and consumer confidence will see property prices continue to rise in the short term. However it is too early to predict what affect the end of the stamp duty holiday will have but it is likely the market will slow down, if only slightly, however we are cautiously optimistic as we enter the key autumn period.”
Bardsey based Furnell Residential primarily covers Bardsey, Wetherby, Collingham, Scarcroft, East Keswick, Boston Spa, Harewood and parts of Harrogate.