UK house prices increased at the fastest pace in more than four years in September, data from the Lloyds Bank subsidiary Halifax and IHS Markit showed Wednesday.
House prices grew 7.3 percent on a yearly basis in three months to September, following a 5.2 percent rise in three months to August.
On a monthly basis, house prices were up 1.6 percent but slightly slower than the 1.7 percent increase logged in August. Prices were forecast to advance 1.5 percent in September.
Russell Galley, Managing Director at Halifax observed that there has been a fundamental shift in demand from buyers brought about by the structural effects of increased home working and a desire for more space, while the stamp duty holiday is incentivizing vendors and buyers to close deals at pace before the break ends next March.
However, it is highly unlikely that the housing market will continue to remain immune to the economic impact of the pandemic as the release of pent up demand and the stamp duty holiday can only be temporary fillips, said Galley.
Galley said significant downward pressure on house prices should be expected at some point in the months ahead as the realities of an economic recession are felt ever more keenly.
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