UK house prices rise at fastest rate since 2016, says Nationwide
In September, house prices were increasing at the quickest pace per annum since the 2016 Brexit referendum, according to UK's largest construction firm, because homeowners continued to benefit from a benign economy amid the pandemic of coronavirus.
In September, the average house price for UK came to £226,129, which was record high in the previous month, Nationally published.
With the demand renewal after the British lockdown and temporary decreases in duty decreases, the pandemic has rattled the home sector, which tends to support revenues even though analysts expect a big rise in unemployment in the next century.
Related: UK housesharers in the Covid crisis are searching for gardens and living rooms
The prices grew by 2 percent in September by 0.9 percent month after jumping in the preceding month, according to Nationally.
Separate data released by the Bank of England on Tuesday revealed that in August, mortgage approvals have risen to the highest level in nearly 13 years, as well as a record high UK rates in August for the competitor Halifax mortgage lender.
In the UK pricing jumps were clear, with more than 5% in the third quarter of 2020 relative to a year ago in south-western England and the suburban towns across London.
The rate of yearly development decreased during the quarter only in Scotland and north-west England.
The average London prices reached a record peak in September of £480,857, 57% above their pace in 2007, ahead of the global financial crisis.
In September, the UK average price inflation increased to 5%, the fastest pace since September 2016
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Guardian Graphics Source: Price Index of the National House
"The turnaround [in UK rates] is a result of many causes, Robert Gardner said, the chief economist of Worldwide.
There is pent-up appetite and choices are already made to go ahead until lock-downs.
"The holiday in stamping duties enhances traction by browsing.
Behavioral modifications may also promote activity when citizens reassess their living conditions and desires.
However, some analysts are predicting the house price boom will run out throughout the following months while government funding for the labor market would decline considerably and unemployment is predicted to cross 8 percent by year-end, according to Treasury independent estimates.
The vacation in the form of stamp duty would be also expired on 31 March 2021 for assets under £ 500 000, but in a staggered budget for Chancellor Rishi Sunak.
The EY Item Club, one economic forecaster, predicts that by mid-2021 house prices could be around 5% lower than at present as the economic condition worsens.
"Value rises would possibly slow as pent-up demand for the sector now moves up, said Hansen Lu, an economist in Capital Economics, a consultancy company.
See forward we assume the underlying sluggish economy will be halted before the end of 2021 with the end of the stamp duty drop.
The "mini-boom" in house prices might partly represent a drive towards working from home after the pandemic, Lu adds: residential purchasers who search for more space compensate for floor room that their workers have already compensated for.