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Summary
- Nationwide Building Society said house prices in the UK would continue rising even after the stamp duty holiday is withdrawn.
- The rising property prices signify a changing lifestyle pattern ushered in due to the pandemic, Nationwide said.
- It has also warned that first-time homebuyers would find it difficult to own a house because of increasing property prices.
Extending the momentum seen in the housing market throughout the Covid-19 pandemic, Nationwide Building Society has said that house prices across the UK would continue rising even after the stamp duty holiday is withdrawn.
Nationwide has, however, warned that the first-time homebuyers would find it difficult to own a house because of increasing property prices. According to data published by the ONS (Office for National Statistics), house prices increased 10.2 per cent year-on-year to March. This has been the steepest annual jump since the onset of the August 2007 financial crisis.
According to Nationwide, the second largest mortgage lending provider, the rising property prices signify a changing lifestyle pattern ushered in due to the pandemic. The shift to work-from-home has led to a rise in demand for bigger homes with gardens and enough space. It is unlikely that the demand will disappear once the stamp duty holiday is withdrawn.
Also read: UK Construction PMI Expands in April, Highest in Over 6 Years
A survey by the company last month found that 25 per cent of people were either in the process or were considering buying a house because of the pandemic, against 28 per cent seen in the September survey results. Nationwide’s forecast though said that housing prices would continue to rise in the next five years.
A look at the 3 FTSE real estate investment and services stock:
Rightmove Plc (LON: RMV)
The shares of the FTSE 100 company were trading up 0.17 per cent at GBX 591 on 24 May at 08:14 AM GMT+1. The company has a market capitalisation of £5,081 million. The FTSE 100 index was up 0.18 per cent at 7,030.79.
(Source: EODHD/Others, Thomson Reuters)
For the year ended 31 December 2020, the company’s revenue fell 29 per cent to £205.7 million from £289.3 million a year ago. Its operating profit was down 37 per cent to £135.1 million from £135.1 million in the previous year.
Also read: Focus On 3 REITS Stocks as Study Predicts Property Market to Face Supply Crunch
Grainger Plc (LON: GRI)
The shares of the company traded up 0.07 per cent at GBX 281 on 24 May at 08:39 AM GMT+1. The company has a market capitalisation of £1,885.32 million. Meanwhile, the benchmark index, FTSE 250 was up 0.11 per cent at 22,424.46.
(Source: EODHD/Others, Thomson Reuters)
For the six months ended 31 March 2021, company’s net rental income fell 6.21 per cent to £34.7 million compared to £37 million in the same period a year ago. Rental growth were of 1.7 per cent on a like for like basis.
Savills Plc (LON:SVS)
The shares of the FTSE 250 company were up 0.09 per cent, trading at GBX 1,160 on 24 May at 08:49 GMT+1. The company has a market capitalisation of £1,663.95 million.
(Source: EODHD/Others, Thomson Reuters)
For the full year ended 31 December 2020, the company’s revenue was down 9 per cent to £1.74 billion compared to £1.91 billion a year ago. It reported a statutory profit before tax of £83.2 million compared to £115.6 million a year ago.
