The market is also being boosted by the low cost of borrowing, with the government encouraging lenders to offer first-time buyers 95% mortgages by offering a guarantee scheme running until the end of 2022.Last month, the chancellor, Rishi Sunak, extended the stamp duty holiday on houses sold for less than £500,000 in England and Northern Ireland until 30 June. After that, it will be reduced to £250,000 until 30 September, before returning to its original level of £125,000.
“Housing market activity is likely to remain fairly buoyant over the next six months as a result of the stamp duty extension and additional support for the labour market included in the budget,” Gardner said. “With the stock of homes on the market relatively constrained, there is scope for annual house price growth to accelerate further in the coming months.” Andrew Wishart, Investment Property economist at the consultancy Capital Economics, said an acceleration in annual house price growth into double digits over the summer was now “all but guaranteed”.
UK Real Estate Market Growth Analysis
The average UK house price was up by 7.1% in April 2021 compared with the same month in 2020, to a record of £238,831. The average UK home is worth £15,916 more than a year ago.
The annual rate of growth was up on the 5.7% recorded in March, and just below the peak rate recorded during the coronavirus pandemic of 7.3% in December.
High demand and low supply could create conditions for housing super-boom, says Nationwide.
House prices in April rose at the fastest rate since 2004 as the UK faces a potential sales “super-boom”, with buyers rushing to take advantage of the extension of the government’s stamp duty holiday.