UK experiences first double-digit house price growth since credit crunch | New
House prices rose 1.8% in March according to the first official data of the month, pushing prices up more than 10% year-on-year for the first time since the global financial crisis.
Figures from the Office of National Statistics (ONS), based on land register data, show the average price of a house has risen to £ 256,000 in the UK, with the largest increases in the north of England.
Growth equates to a 10.2% rise in the UK in March 2020, the largest year-over-year increase since August 2007.
Data also suggests that price growth is accelerating, with monthly growth of 1.8% being the highest since the start of the pandemic and the strongest monthly growth in seven years.
March was the month in which Chancellor Rishi Sunak decided to further stimulate the market by extending the current stamp duty holiday, which was originally scheduled to expire in March, until the end of June for properties under 500,000. £. However, the maximum saving of £ 15,000 from the stamp duty holiday is well below the more than £ 25,000 average price increase seen since the start of the pandemic.
The rise in domestic prices comes despite much slower growth over the past year in London, where prices only rose 3.7% in March 2020 to a fraction of over half a million pounds, although prices in London rose 1%.
Yorkshire and the Humber region have seen the biggest price hike since the start of the pandemic, data shows, with the average cost of a house rising 14% in just one year, followed closely by a rise 13.7% in the northeast. . Before the pandemic, these areas had the lowest average house prices of any in England.
Across the UK, house prices have risen the fastest for semi-detached and detached properties, with both increasing by more than 11%. Semi-detached homes have also seen their prices increase faster than average. However, the cost of buying an apartment only increased by 5% over the same period.
The number of sales in March, at 191,000, was more than double the number seen in the same month last year, the ONS said.
Jonathan Hopper, CEO of Garrington Property Finders, said the figures showed the pandemic had completely freed the real estate market from the wider economy, with growth seen during a period when GDP fell 6%.
“The boom is the product of a perfect storm of factors. Years of demand that had been quelled by Brexit uncertainty have been unleashed just as the hardships of life in lockdown have forced thousands to fundamentally reassess what they expect from their homes.
The Sunday Times chief economic editor this week criticized Sunak for extending the stamp duty holiday amid already sharply rising prices, calling the move “bizarre” and “counterproductive” and saying it There were now reasons to be concerned about the size of the rapid rise. prices.