Average UK home prices hit an all-time high in March, a month when a package of measures was announced in the budget to help buyers, new data shows.
Lender Halifax Managing Director Russell Galley said: “After a relatively subdued start to the year, the housing market experienced some kind of resurgence in March, with prices rising just over $ 1. % compared to February.
He said: “This rise – the first since November last year – means the average property is now worth £ 254,606, a new record.”
In the last quarter (January to March), house prices were 0.3% higher than in the previous three months.
Data from March shows house prices have risen 6.5% per year to £ 15,430 in cash.
Plans set out in the March 2021 budget included a new mortgage guarantee system to help buyers with a 5% down payment move up the property ladder. In addition, Chancellor Rishi Sunak said a suspension of stamp duty on property sales up to £ 500,000, which was to last until the end of March, would be extended until June 30.
Halifax’s Galley said: “Overall, we expect high activity levels to be sustained in the coming months, as consumer confidence is boosted by the successful vaccine rollout, and buyer demand continues to be fueled by the desire for larger properties and more outdoor space, as life’s priorities changed during the pandemic. A shortage of homes for sale will also support prices in the short term, as lower availability always favors sellers. “
But he added: “However, given that the economy has yet to feel the full effect of its biggest recession in over 300 years, we remain cautious about the long-term outlook. Given current levels of uncertainty and the potential for rising unemployment, we still expect house price growth to slow down somewhat by the end of this year. “
When the first lockdown began in March last year, people were urged to avoid moving whenever possible.
But the rules eased in May and a number of estate agents reported pent-up demand for moves, with many reassessing housing needs during the lockdown. The stamp duty festival was launched in July.