£1,789, to £262,954. Accordingly, this 0.7 per cent increase last month topped the previous peak of £261,642 recorded in May. While, the annual rate of house price inflation in August slowed to 7.1 per cent, prices still remain 9.9 per cent higher that June 2020, when the housing market began to reopen after the first Coronavirus lockdown.
Data issued by the top mortgage lender showed the highest jump in prices year on year was reported from Wales, at 11.6 per cent, the only double-digit increase recorded in the UK. The annual house price inflation in Northern Ireland rose to 9.3 per cent, while the north-east picked up to 8 per cent. A strong growth was also recorded from the south-west, possibly reflecting in the increase in demand for rural living, as the prices jumped by 9.6 per cent in the region.
A senior executive at Halifax noted that although the tax break and other measures had a noteworthy influence on house prices, there are several other circumstances driving house prices to a record high.
“Much of the impact from the stamp duty holiday has now left the market, as highlighted by the drop in industry transaction numbers compared with a year ago. However, while such government schemes have provided vital stimulus, there have also been other significant drivers of house price inflation,” Russell Galley, the organisation’s managing director noted.
He added that apart from the limited supply of properties for sale, several other structural factors are also driving record levels of buyer activity.
“These trends look set to persist and the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax break comes to an end later this month,” Russell said. “Moreover, the macroeconomic environment is becoming increasingly positive, with job vacancies at a record high and consumer confidence returning to pre-pandemic levels.”
