Not since 2014 have we seen the price of properties in the UK rise with such speed. May alone saw the jump in value surpass even the highest of expectations as home buyers sought larger properties whilst taking advantage of the extension to the stamp duty holiday.
Houses placed in rural and coastal locations are enjoying the best of the property market boom as people working from home now seek to leave the cities in search of more space.
Nationwide Building Society have reported that 30% of home buyers were looking to access outdoor spaces with greater ease in the wake of the pandemic.
The spike in prices does not seem to be affecting the affordability of property for many buyers who are taking advantage of record low interest rates, low deposit mortgages and the stamp duty holiday. The average price of a house is now at a record £243,000, an increase of £24,000 over the last 12 months with the biggest price rises located outside of London and in particular in Cornwall which is currently the most popular search destination.
However demand for homes is now outstripping supply, prompting buyers to put in offers for properties they haven’t even viewed. Even younger buyers are now drawn to the attraction of rural life as they join the ‘race for space’ and four or five bedroom properties are the most sought after as people look for working from home spaces.
Nationwide are expecting the housing market to remain ‘buoyant’ for the next six months, although it has cautioned that the long-term outlook was less certain. Fred Harrison, the British economic commentator who correctly predicted both the 2008 and 1990 property crashes believes house prices will continue to boom until 2026 when we will see the next property crash.