How has coronavirus affected house prices?
As the pandemic surges onwards, we want to look at how the coronavirus has affected house prices in recent months. The property market has, against the odds, enjoyed a mini boom since reopening after lockdown over the summer. Rightmove House Price Index for October revealed that house prices are now actually 5.5% higher than a year ago. Where experts predicted the market to slow down, it has actually dramaticlly increased.
There are a few reasons behind this unexpected boom. The first is the stamp duty holiday which was introduced by the government back in July. Another potential reason behind this rise in demand is the current working from home climate. With lot of the country spending so much time in their homes, it has forced people to re-evaluate what is important to them and their living situation. For example, properties with a good outdoor space and a home office have been particularly popular. Alot of homeowners are looking to make sure their environment and surroundings are right for them. This means alot of people are willing to pay a little more money for the right property.
The Land Registry says the price of a property in the UK increased by 0.7% month-on-month and 2.5% year-on-year in August, to reach £239,196. Nationwide stated that UK house prices rose by 0.9% in September compared with August. In the three months from July to the end of September, UK prices were up 1.7% compared with the previous quarter and the average home cost £226,129.
We’re beginning to get a clearer picture of the impact coronavirus has had on house prices, but with the ongoing stamp duty holiday and the prospect of further lockdown measures, figures could fluctuate significantly in the coming months.
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