Property prices see ‘surprise’ surge last month: Home values hit another record high as buyers attempt to beat the stamp duty deadline
Nationwide says that property values have risen by 6.9 per cent in a year, up from 6.4 per cent in January. Nationwide have described it as a ‘surprise’ acceleration.
Speaking before the recent extension to the Stamp Duty Holiday, Robert Gardner, Nationwide’s chief economist, explained: “House prices rose by 0.7 per cent month-on-month, after taking account of seasonal effects, more than reversing the 0.2 per cent monthly decline recorded in January.
“This increase is a surprise. It seemed more likely that annual price growth would soften further ahead of the end of the stamp duty holiday, which prompted many people to consider a house move to bring forward their purchase.
“Many peoples’ housing needs have changed as a direct result of the pandemic, with many opting to move to less densely populated locations or property types, despite the sharp economic slowdown and the uncertain outlook.
The Chancellor recently announced an extension to the current Stamp Duty holiday, which was due to expire on 31 March, until June 2021 for property purchases up to £500,000.00 and until the end of September 2021 for purchases up to £250,000.00.
As a result of the extension, yet more buyers are likely to attempt to get their purchase completed before the deadlines and potentially save up to £15,000 in tax.