U.K. House prices have reached an all-time high according to Nationwide Building Society.
The news follows the elimination of stamp duty on residential property under a £500,000 threshold.
House prices have increased 2% in August, the highest monthly rate since
February 2004, taking the U.K. average house price to
The increase came due to a number of factors, including pent up demand existing prior to
lockdown measures being introduced, as well as less homes being built due to the pandemic
restrictions. However, it is clear that the Treasury’s decision to eliminate stamp duty also
played a part.
"House prices have now reversed the losses recorded in May and June and are at a new all-
time high," Robert Gardner, Chief Economist.
However, the increase is likely to come to an end as unemployment and uncertainty in the
economy looks set to rise again, with no proposed extension to the furlough scheme it is
likely many will lose their jobs unless there is a corresponding return to normal leisure and retail behaviour..