The 2.1% rise cited by Nationwide was likely to be due to cheap loans and a desire to get out of cities
More evidence that Rishi Sunak’s pandemic freebie for homebuyers was a waste of money: even when the stamp duty holiday was partly removed, house prices continued to fly. The 2.1% rise in August, on the Nationwide’s readings, was the second largest monthly increase in 15 years.
It all suggests the 13% rise in house prices since the start of the pandemic had little to do with Sunak’s subsidies. The Resolution Foundation thinktank reached that conclusion in a persuasive analysis last week, arguing that the big drivers were low interest rates – a proven catalyst – plus accumulated lockdown savings and the desire among some buyers to get out of cities in search of more space. That account rings true. The housing market did not need support and Sunak did not have to let an estimated £4.4bn in tax receipts slip between the cracks.
