Average house price hits record £ 323,530 as sellers cash in huge demand during stamp duty holidays
- Prices rose 1.1% and are now £ 16,818 higher than at the same time last year
- Experts expect growth to continue through the New Year and could peak at 7%
- The market has enjoyed a ‘mini-boom’ due to pent-up demand and the abolition of stamp duty
The average asking price for a house has climbed to a record £ 323,530 as sellers take advantage of unprecedented demand during the stamp duty holidays.
Prices rose 1.1 percent from September to October and are now £ 16,818 – or 5.5 percent – higher than at the same time last year.
Experts said they expected growth to continue until the new year when it could peak at 7%.
Prices rose 1.1 percent from September to October and are now £ 16,818 – or 5.5 percent – higher than at the same time last year. Prices in London rose 2.6% (pictured)
The market has seen a ‘mini boom’ due to the combination of pent-up demand, with households seeking more space after foreclosure and the removal of stamp duty on houses up to £ 500,000.
This has led to an increase in sales of homes higher up the chain for over £ 1million, according to the analysis.
However, a Bank of England survey last week predicted borrowers would soon have a harder time getting a mortgage as lenders brace for a winter jobs crisis.
Prices in the East Midlands (pictured) are up 7.7%. The market has experienced a ‘mini-boom’ due to a combination of pent-up demand and the removal of stamp duty for houses up to £ 500,000
This sparked warnings that the recovery was waning, but the new report from real estate website Rightmove suggests the market will continue to thrive until at least the end of the year.
Tim Bannister, of the company, said: “Previous records are crashing in this extraordinary market, and there are still some legs left in the rise in house prices.”
The website report suggests that the annual growth rate will peak at around 7% by December, after September saw a record number of agreed sales.
Experts said they expected growth to continue until the new year, when it could peak at 7%
He said it now only takes an average of 50 days to sell a home – faster than ever – leaving agents with more properties marked as sold than the first time.
The growing demand and the urgency with which houses are purchased has been facilitated by the government’s decision to temporarily remove the stamp duty on purchases worth up to £ 500,000 until March 31, 2021.
Rightmove said the pace of growth is now slowing, but sales agreed for October were still up 58% from the same time last year.
And separate data from Savills estate agents and TwentyCi analysts revealed that an average of 868 sales of over £ 1million had been closed each week since the start of June, 66% more than the weekly average of 522 over the same period in 2019.
Martin Robinson, Hunters Realtors, said, “The market continues to be strong in all types of properties.
“ We are also seeing changes in consumer habits, with many claiming that there is no need to be at the doorstep of their workplace and that they are looking to move to a more rural or affordable location, if the speed of the broadband allows it, to work remotely. ‘