UK house prices reached a new record high in July, rising by 3.8% year-on-year as the property market recovered from the disruption caused by the national lockdown.
The temporary Stamp Duty reduction introduced by the Chancellor provided additional support to the housing market, reducing the upfront cost of purchasing a property. Under the measure, buyers in England and Northern Ireland could benefit from savings on purchases of up to £500,000.
The increase in buyer activity was reflected in rising property values, with the average cost of a three-bedroom semi-detached home increasing by 1.6% month-on-month, from £237,834 in June to £241,604 in July.
Survey data also pointed to a significant improvement in market sentiment. New buyer demand moved into strongly positive territory, while newly agreed sales also returned to positive levels for the first time since February.
The figures highlighted the speed at which activity returned to the housing market following the easing of lockdown restrictions, supported by pent-up demand and the temporary reduction in Stamp Duty.
