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House price growth rebounds in July

House prices grow according to ONS (Office of National Statistics)

Figures released in August by the ONS showed that the average price of a house had risen by 2.5% to £239,196. This was a 2.1% rise on figures for July. The strongest growth witnessed took place in the East Midlands where growth had reached 3.6%.

The ONS information was captured via the RICS (Royal Institution for Chartered Surveyors) market survey for August 2020. All things considered, it appears to indicate some good momentum in the private property sales market place even if you consider the longer-term effects of the covid pandemic cautiously. With that said, these market statistics would also indicate that a 4 year high has been achieved in house prices and it appears that the demand for larger property or homes with gardens is a growth area. Perhaps an aspect accentuated by the pandemic. 

If we also consider mortgage approvals for house purchases (an indicator for future lending) this too saw a significant increase matching the previous best seen in 2007 where 84,700 approvals were granted. To help understand where this is happening and to show the properties being transacted we have broken the numbers down a little.

Let’s start with locations by country:- 

England 2.5% increase
Wales 2.7% increase
Scotland 0.6%
Northern Ireland 3.0%

Now let’s break the increases up by Property type:-

Property type August 2020 August 2019 Difference
Detached £365,316 £354,368 3.1%
Semi-detached £230,455 £221,347 4.1%
Terraced £194,611 £190,139 2.4%
Flat or maisonette £203,708 £204,645 -0.5%
All £239,196 £233,366 2.5%

Looking over this information you could quite easily assume that the market is in a buoyant position despite the restrictions of lockdowns. The temporary cut in stamp duty and help to buy schemes for first-time buyers will be assisting the growth captured and changes to these arrangements should be ongoingly monitored. Come to Crowd to Live for other options and shared ownership schemes.

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