UK House Prices Reach All Time High


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

£224,123.


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..

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