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Summary
- House prices in February soared unexpectedly, a report said.
- Property prices jumped almost 0.7 per cent from 6.4 per cent in February.
The UK’s property markets are soaring yet again. In February, the house prices jumped unexpectedly driven by an uptick seen due to a temporary relief in stamp duty. The prices jumped 0.7 per cent in February. In annual terms, prices of houses rose 6.9 per cent in February from 6.4 per cent in January, a report from mortgage lending firm Nationwide has found.
Also read: Has Sunak’s Stamp Duty Holiday Led to The Upbeat Demand Scenario for The UK Property Market?
The housing market was able to recover from the Covid-19-induced slump as the government announced a temporary cut in stamp duty last year. The housing market also boomed as lifestyles changed due to the pandemic.
The tax break, which saves buyers £15,000, is due to end in March.
But prices were also influenced by speculations that Chancellor of the Exchequer Rishi Sunak might extend the tax suspension beyond March in the March budget. The Boris Johnson government has also unveiled a mortgage guarantee scheme to help those with small deposits to buy property.
Also read: Are buy-to-let investors fleeing the UK property market?
Some experts have said that this rise in prices comes as a surprise because of the lack of properties available in the market now. It might be driven by the stamp duty holiday and shift in housing preferences. Experts added that the boom might see a slowdown in coming months if the labour market weakens.
At the same time, experts have also pointed out that new schemes might not be able to solve the affordability issues that are faced by first-time buyers. But one this is for sure that the UK property markets have been able to survive the economic fallout of the pandemic.
