PROPERTY prices have risen at the fastest pace since 2004 as the UK’s house buying frenzy continues, new research shows.
Annual house price growth jumped to 13.4% in June – the strongest growth since November 2004, according to Nationwide Building Society.
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Prices in June are now almost 5% higher than what they were three months ago in March.
The average house price now stands at £245,432, according to the building society.
It comes as Brits have been locking horns in bidding wars up and down the country to bag a home before the stamp duty deadline.
Buyers currently do not have to pay stamp duty on the first £500,000 of a home purchase up until the end of the month (June 30).
But from July 1, this relief will start to taper off, and buyers are racing to exchange before the looming deadline and save thousands.
The Covid crisis has also meant less homes are being put up for sale, with experts predicting that no homes could be left on the market this summer.
It’s caused house prices to soar and properties to sell within just days of being put up on the market.
These rocketing prices mean that it takes longer for Brits to save up for a home, Nationwide’s chief economist Robert Gardner said.
“A 10% deposit is over 50% of a typical first-time buyer’s income,” he said.
“A potential buyer earning the average wage and saving 15% of take-home pay would now take five years to raise a 10% deposit.”
Estate agent Andrews Property Group chief executive David Westgate indicated that prices could be getting out of control.
“It’s starting to feel like prices are freewheeling with buyers snapping up properties, particularly those with generous outside space, as soon as they come onto the market,” he said.
AJ Bell financial analyst Danni Hewson said house prices are unlikely to cool down in the short-term.
More to follow…
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