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House prices rose by £44 every day in the last six months

House prices increased by an average of £44 every day for the last six months, hitting a record high of £235,000 in August.

Article originally published by The Telegraph. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Buyer demand in September was up 35pc despite the end of the stamp duty holiday.

House prices increased by an average of £44 every day for the last six months, hitting a record high of £235,000 in August.

According to property website Zoopla, values rose the fastest in the South East and South West. Here, they climbed £64 and £63 per day respectively since February.

In the previous six months, prices rose by £30 a day across the country.

This meant home values in August were 6.1pc higher than in the same month last year. This was more than double the growth rate recorded 12 months earlier.

Zoopla also found that buyer demand in September was 35pc above the average level recorded over the last five years.

This was the highest level recorded since May and showed that the smaller stamp duty savings on offer since the holiday tapered at the start of July have not deterred buyers. It also suggested that there will be no cliff edge in sales activity when the tax savings fully disappear later this week.

Gráinne Gilmore, of Zoopla, said the end of the stamp duty holiday has had little impact. “The demand coming from buyers searching for space, and making lifestyle changes after consecutive lockdowns, has further to run.”

But the end of the furlough scheme this month, coupled with economic uncertainty will cool market sentiment towards the end of the year, said Ms Gilmore.

The market is still moving very fast, in part due to a lack of supply. An average home on the market took 27 days to sell in August. Normally, at this time of year, the process would take 40 days.

A race for space in the wake of lockdown has meant that in the year to date, agreed sales were up 16pc compared to the 2017-2019 average, while the flow of new supply was down 4.7pc.

There are signs that the supply crunch could ease up, and Ms Gilmore said that the number of homes available to buy will increase at the beginning of next year.

Landlords have rushed to cash in on the house price boom. In the three months to the end of September, 7.9pc of homes on the market were previously rental properties. This was nearly triple the share in the same period in 2019.

In London, landlords selling up their properties accounted for more than one in eight purchases. In turn, this is fuelling an extreme shortage of rental properties, driving up rents.

House price growth was steepest in Wales, where it hit 9.8pc year-on-year, while London lagged behind at 2.2pc.

The return to the office drove a 14pc monthly jump in buyer demand in the capital. Demand for London houses was up 25pc, compared to a 6pc monthly jump for flats.

Liverpool recorded the highest price growth of any of the UK’s major cities with average prices up nearly 10pc in the 12 months to September.

This article was written by Melissa Lawford from The Telegraph and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.


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    Article originally published by The Telegraph. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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