LONDON (UK) – British house prices increased the most since 2016 in August to hit a record high, mortgage lender Halifax said. It added that these signalled a boom post-lockdown in the country’s housing market despite fears regarding a sharp rise in unemployment.
House prices were 5.2% higher than in August 2019, Halifax said.
Russell Galley, managing director at Halifax, said the surge in activity was triggered by a temporary tax cut on purchases, increase in demand and a few buyers in need of moving to bigger properties after the lockdown.
“Notwithstanding the various positive factors supporting the market in the short-term, it remains highly unlikely that this level of price inflation will be sustained,” he said.
“We do expect greater downward pressure on house prices in the medium-term,” Galley said.
Last week, another mortgage lender Nationwide also reported house prices marking the highest record in August and data from the Bank of England showed mortgage approvals rose unexpectedly strongly in July.
House prices were 1.6% higher than in July, Halifax said. It was slightly higher than the median forecast of 1.5% in a poll of economists.