Prices rocketed 3.8 percent year-on-year in July to hit the record. Property experts knew the Chancellor’s cut in stamp duty was a shot in the arm for the struggling sector after it was frozen during lockdown. But they were surprised by the spike in house prices. Announced at beginning of last month and running until next March, buyers of homes worth up to £500,000 will save as much as £15,000.
It has persuaded buyers and sellers in all areas to flock back to the property market, rejuvenating the sector.
The cost of a three-bedroom semi jumped by 1.6 percent – or £3,770 – month-on-month to £241,604. This is up from £237,834 in June.
Russell Galley, managing director of Halifax, said: “Following four months of decline, average house prices in July experienced their greatest month-on-month increase this year, comfortably off-setting losses in 2020.
“The average house price in July is the highest it has ever been since the Halifax house price index began in 1983.
“The latest data adds to the emerging view that the market is experiencing a surprising spike post-lockdown.”
Islay Robinson, chief executive of Enness Global Mortgages, said: “The stamp duty holiday has been the property market equivalent of Black Friday, bringing a massive influx of buyers who may otherwise have been sat on the fence until next year.
“It isn’t just the average home buyer that’s hitting the market for a discounted spending spree either.
“Demand has spiked at all tiers with high-end and foreign buyers also scrambling to secure themselves a deal.
“The off-shoot of this is a rebound in property price growth and, with the cost of borrowing remaining very favourable, it’s unlikely to let up anytime soon.”
New buyer demand has moved to a balance of +61 percent compared to -7 percent and -94 percent in April and May respectively.
And newly agreed sales figures have moved into positive territory for the first time since February, with a net balance of +43 percent, from -34 percent in May.