An extension to the stamp duty holiday has maintained momentum in an already very active housing market, pushing average prices to a new record high.
The latest data from lender Halifax shows annual house price growth of 8.2% in the year to April.
Prices rose by 1.4% from March and are growing at their fastest pace in 5 years.
Halifax’s latest monthly house price index shows average prices are 0.9% higher in the three months from February to April compared to the previous three months.
It means that the average price now stands at a new record high of £258,204.
Almost £20,000 has been added to the value of the average home in the past twelve months.
Russell Galley, managing director of Halifax, said:
“The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the government scheme.
“The influence of the stamp duty holiday will fade gradually over the coming months as it’s
tapered out but low stock levels, low interest rates and continued demand is likely to continue to
underpin prices in the market.”
In the short term, Halifax predicts the current levels of housing market activity will continue, with demand for homes with more indoor and outdoor space.
Recent data from the Bank of England found that UK mortgage borrowing reached £11.8 billion in March, which is the strongest month for lending since records began in 1993.
There were 82,700 mortgage approvals for home purchases in March, lower than a recent peak of 103,100 last November but higher than the 73,000 mortgage approvals recorded last February, before the onset of the pandemic