UK house prices rise again as homebuyers seek outdoor space

The average price of a UK home now stands at more than £338,000

The average price of UK homes coming to the market increased by 0.7% between the middle of June and early July, compared to the month before.

It is the biggest rise in UK house prices for the time of year since 2007, despite the stamp duty holiday being scaled back, according to data from Rightmove.

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The average price of a UK home now stands at more than £338,000, an increase of more than £21,000 over the past six months.

The price surge has come about thanks to a number of factors. First, people are demanding larger properties with outdoor space as they are spending more and more time at home. There is also a narrowing of supply on properties following an extended hot-run thanks in part to the government’s stamp duty holiday.

While the housing boom has supported the UK economy during a downturn, it has also exacerbated wealth inequality between those who own homes and those who don’t.

Properties with four bedrooms and above are seeing the biggest imbalance in supply and demand, while homes with two bedrooms and fewer had an unchanged number of new sellers.

John Eastgate, Managing Director of Property Finance at Shawbrook Bank, commented: “The exceptional times in which we find ourselves makes any analysis of short term movements in house prices more than challenging. Extreme demand, extreme stimulus and a dearth of supply have created a unique scenario.”

“But if we look longer term, history shows us that the housing market has a long-term pattern of strength and resilience. While the ending of lockdown and the Stamp Duty Holiday will naturally lead to a slowdown in activity levels, a supply/demand imbalance and continued commitment to move from buyers will help to ride out any significant drop-off in activity.”

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