Posts with tag: Benham and Reeves

UK house price growth continues, as Nationwide publishes June House Price Index

Published On: June 30, 2021 at 8:18 am

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Annual house price growth remains in double digits but slows month-on-month

The June 2021 House Price Index from Nationwide states that annual house price growth has now increased above 13%, with all UK regions recording a pickup in Q2.

The highlights of the report include:

  • Annual house price growth has increased to 13.4%, the highest level since November 2004
  • Prices are up 0.7% month-on-month, after taking account of seasonal factors
  • Northern Ireland has seen the strongest growth in Q2, Scotland the weakest, closely followed by London

Colby Short, Founder and CEO of GetAgent.co.uk, commented: “Properties are going under offer at an alarming pace at the moment and buyers continue to swarm the market despite the dwindling hopes of a Stamp Duty reprieve. There also remains a severe shortage of stock to meet this demand and so sellers are achieving a very good price for their property, often at, or in excess of the original asking price. 

“While a reduction in buyer demand is expected towards the back end of this year, the scales will remain firmly tipped in favour of sellers due to the imbalance between supply and demand and so we should see a buoyant level of property price appreciation remain for the duration of the year.”

Marc von Grundherr, Director of Benham and Reeves, commented: “We’re currently seeing huge rates of house price growth not seen since some time before the last property market crash. There’s no end in sight where this current market performance is concerned, despite some having predicted a market slump on and off since the pandemic first started.

“It’s important to remember that while the market did show signs of slowing down as we approached the original Stamp Duty deadline, we’re now looking at a very different market altogether.

“People are returning to work and life is gradually returning to a greater sense of normality and so the stimulation of a Stamp Duty saving is no longer required in order to maintain market activity.

“London, in particular, is showing strong signs of a shift in momentum across both the rentals and sales market. This is being driven by a realisation that we can’t work from a secluded countryside bolthole forever and now that we are returning to the workplace, a lengthy commute on a stuffy train is no longer as manageable when it’s required five days a week instead of one or two.”

James Forrester, Managing Director of Barrows and Forrester, commented: “The Stamp Duty holiday isn’t the be-all and end-all where homeownership is concerned and it certainly isn’t the primary factor causing buyers to enter the market at mass. So its tapered expiry is unlikely to cause current levels of market activity to evaporate overnight. 

“Once both the initial and extended deadlines have expired, the fires of buyer demand will continue to be stoked by the availability of 95% mortgage products and very low interest rates. Of course, there will be some period of natural market realignment after such a sustained period of manic activity, but we’re worlds away from seeing a property market crash.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “It’s crunch time for the UK market and we can expect to see a far less positive outlook from here on out where house price appreciation is concerned.

“For far too long, homebuyers have been borrowing beyond their means and offering above the odds in a desperate scramble to secure a Stamp Duty holiday saving. Now that this is starting to slip through their fingers we will see a reduction in transaction levels and the inevitable decline in property prices that will soon follow.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “The market has greeted a largely tax break-free world with an air of indifference that is bordering on animal spirits. 

“The right properties are still selling very fast and there’s still not enough of them to meet demand. Stock levels are down while transactions are relatively high. This imbalanced cocktail is not just keeping prices where they are, it’s driving them on to ever dizzying heights. The result is that the average house price has surged £29,000 in 12 months which is a boon for consumer confidence among homeowners and a staggering rise. 

“If the market was the slightest bit dependent on the Stamp Duty relief, a yawning gap would have opened up in the performance of the market over the past quarter but that chasm is entirely absent. The near-complete raising of the Chancellor’s drawbridge already feels like a distant memory.

“Even in London, which has been trailing the performance of the country at large recently, growth has jumped this quarter despite prices being significantly higher. The capital has shrugged off the withdrawal of Stamp Duty relief as confidence from buyers, who can almost smell the end of Covid restrictions, finally sense a return to normality. There’s a sense that this is now giving people the opportunity to make a longer-term commitment to the capital which is helping sales across all property types.

“As restrictions are eased, the only way is up for London which may not feel the chill of an expected autumn slowdown in quite the same way as the rest of the country.”

Iain McKenzie, CEO of The Guild of Property Professionals, says: “As the nation bites its fingernails ahead of England versus Germany, take solace in one battle with a predictable result – the relentless growth of the housing market.

“With only days to go until the deadline to take advantage of the Stamp Duty holiday in full, the market is seeing a last-minute scramble to complete sales.

“The 13% price rise compared to last June – the highest since 2004 – looks impressive, but it’s important to remember that this time last year the market was mired in lockdown.

“More noteworthy is the three consecutive months of price rises, and a sign of underlying consumer confidence and strength of the housing market. 

“All parts of the UK have seen house prices increase, but the good news for many is that mortgage payments remain stable and affordable.”

David Westgate, group chief executive, Andrews Property Group, comments: “Buyers trying to take advantage of the extended Stamp Duty holiday and the race for more space are pushing house prices into the stratosphere.

“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.

“The end of the full Stamp Duty holiday tomorrow may see activity cool a little, but not significantly, as there are plenty of buyers who still have time and the motivation to complete before the tapered relief ends on 30th September.”

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, comments: “The housing market continues to see an unconstrained rally which may well be going into overdrive as the economy continues to unlock.

“Annual house price growth of this magnitude is something no one thought they’d see, particularly with the Stamp Duty holiday now tapering out.

“Despite that additional cost to buyers, this remains a relatively frenzied market and desirable properties are not staying on the shelf for very long.

“The market is shifting away from short term factors to long term trends caused by the pandemic, which at first were totally underestimated in their influence and staying power.

“If the hunger for larger properties represents a permanent shift, and never reverts to its pre-pandemic norms, then a much-heralded snapping back of prices is going to prove rather elusive later this year.

“The final closure of the Stamp Duty scheme at the end of September may have no impact at all because other factors are so much more important, namely the race for space, low supply, accidental savings and low interest rates.

“London, too, shows signs it may finally be emerging from its slumber, and all eyes will be on the bright lights of the capital as offices and workspaces continue to re-open.”

Record house price growth in Wales and the north as London stands still

Published On: June 22, 2021 at 8:13 am

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The commuter belt rental markets where tenants can reduce their rent by as much as half

Rightmove’s May 2021 House Price Index reports that the average asking price for UK properties has increased by 1.8% since the previous month.

Rightmove also states:

  • Average London house prices are 2.9 times higher than prices in the norther areas of Great Britain. Although still large, this is the smallest ratio recorded by Rightmove since 2013
  • Wales has seen the most growth since the first lockdown at 13%
  • The north has seen a greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

The full report can be read here.

Marc von Grundherr, Director of Benham and Reeves, comments: “A 0.8% rise in monthly price rises, whilst slower in pace than in recent months, is still almost 10% annually if such a trend were to continue. That’s colossal growth and even more so at the top end of the market where homes are seeing over 12% rises in value despite the fact they may soon miss out on the maximum stamp duty holiday saving of £15,000. This bodes well and may confound the doomsayers that have been forecasting a cliff edge come the end of June.”

Ged McPartlin, Managing Director of Ascend Properties, comments: “Despite some southern regions finally starting to stir, the North continues to lead much of the market where annual house price growth is concerned. It’s probably not accurate to say that cash-rich relocators from southern cities are driving this northern resurgence and this strong performance has been very much built on a foundation of localised demand, from buyers keen to take advantage of record-low interest rates while they can.”

James Forrester, Managing Director of Barrows and Forrester, comments: “Home sellers and their acting agents have never had it so good. Not only are transactions climbing along with house prices, but the speed at which properties are selling is extremely fast. Just 41 days to sell a home is close to an all-time best and means that at some extremes, listings have been selling before the ink is dry on the sales particulars.

“Certainly, in the West Midlands, we’re seeing contracts agreed within a week of listing and although it’s unclear as to how much longer the market can perform at this rate, there’s certainly no sign of it letting up anytime soon.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “Property stock is evaporating at an alarming rate due to huge levels of buyer demand and this severe imbalance is causing an artificial property price boom. Great for sellers who can justify overpricing their home but not so great for the wider market that is already groaning under the pressure.”

House price growth begins to slow in latest government House Price Index

Published On: June 21, 2021 at 8:12 am

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Nation’s HMOs worth £26bn in current market conditions

The latest government UK House Price Index reports that average house prices have increased by 8.9% over the year to April 2021. This is down from 9.9% in March 2021.

The highlights of the report also include:

  • The average price of a UK property in April 2021 was £250,772
  • At the country level, the largest annual house price growth in the year to April 2021 was recorded in Wales, where house prices increased by 15.6%
  • Scotland saw house prices increase by 6.3% in the year to April 2021
  • England saw house prices increase by 8.9% in the year to April 2021
  • Northern Ireland saw house prices increase by 6.0% over the year to Q1 (January to March) 2021

Ged McPartlin, Managing Director of Ascend Properties, comments: “Despite a cooling in the monthly rate of house price growth the northern property powerhouse continues to steam ahead, registering some extremely impressive gains on an annual basis.

“This should continue for the remainder of the year, albeit at a less ferocious rate once a Stamp Duty saving is no longer on the cards, as buyers continue to take advantage of low mortgage rates and the newly available 95% mortgage.”

James Forrester, Managing Director of Barrows and Forrester, comments: “There’s no doubt that this monthly decline in house price growth is the markets lagged response to the original Stamp Duty deadline, as buyers and sellers renegotiated terms under the impression a saving was no longer on the table.

“However, it’s far from the market cliff edge that many naysayers had predicted and so it’s fair to say we can put any fears of a market crash in the wake of the extended deadlines to bed.”

Marc von Grundherr, Director of Benham and Reeves, comments: “London has been slowly simmering in comparison to the rest of the UK market having been hit hardest by pandemic uncertainty and a reduction in foreign homebuyer demand, in particular.

“However, the tide is slowly starting to turn and while there’s a very real chance that the wider UK market will come off the boil by the end of the year, London will continue to bubble.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “Almost a full house of regional monthly house price declines in the wake of the original Stamp Duty holiday deadline gives a good indication of what awaits the market at the backend of this year.

“A correction is on the way and we can expect to see a weary market start to show signs of house price fatigue as early as next month, following the initial wind down of the Stamp Duty holiday.”

Andy Sommerville, Director at Search Acumen, comments: “This latest data indicates the new build premium shows no signs of abating.

“This is despite the monthly drop off, which is likely due to an inflation of March’s growth as people rushed to meet the first anticipated Stamp Duty deadline. Demand in April continued to outstrip the availability of housing stock, contributing to one of the biggest gaps seen in years between the price of new builds and existing properties.

“Our national housing supply squeeze looks set to continue for the foreseeable future, pushing up prices further still. The beneficiaries on the building side are the developers of homes with access to gardens, given that working from home and more flexible working practices are likely to continue in the coming months, driving people to move into bigger homes with access to green space.

“The Stamp Duty stampede is piling pressure onto property professionals who are charged with helping new buyers access homes as quickly as possible. Too often, lawyers are seen as those slowing down the moving process, but many are handicapped by legacy practices that weren’t designed for current volumes of demand or with modern consumer needs in mind. Data can provide an antidote to smooth transaction processes, so lawyers can better advise prospective buyers on the risks involved in their purchase at an earlier stage and clear the path towards completion.”

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, comments: “If there’s anything that underlines changing property shopping habits, it’s the eye-watering growth rate recorded in the North East. It has eclipsed all regions bar Wales, which is another favourite destination for those escaping to the country. A leap of 16.9% in 12 months is staggering.

“By next year we’ll be looking back at a figure like this with some awe but the way the market cools from this point doesn’t have to match the rally for excitement.

“If the government’s financial support packages have worked, and employment prospects remain strong, then a gentle long tail that avoids outright falls in prices over the medium term is still likely as we head towards the end of the year and into 2022.

“It’s worth noting that the annual growth readout for the previous month of March has also been revised down, which means it didn’t actually exceed the psychologically important 10% level after all. That said, the market is still overheating, despite a slight softening in the shadow of the original Stamp Duty holiday deadline.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “We’re getting so used to growth rates this high that it’s easy to forget that they are actually as rare as hen’s teeth. First-time buyers will be hoping this star fades fast, and fade it must because the market is punching the top of the dial by historic standards.

“A dose of economic reality is going to start featuring in our lives over the next few months in a way that has been largely absent since early last year. The patient is going to be slowly weaned off the government support that has masked the brutal ructions that would otherwise have played havoc with jobs, house prices and the economy.

“That all begins at the end of the month with the tapering of not just Stamp Duty relief but the furlough scheme too. As it becomes clear how bullet proof the jobs market really is, we’ll get a better understanding of how the economy — on the cusp of fully unlocking — will endure this return to fiscal normality.

“London remains at the back of the pack but started from a higher base and could yet surprise with relatively strong growth as people start returning to the capital in greater numbers. London is likely to be more immune from any slowdown in growth later this year, as it hasn’t been performing the same kinds of heroics seen in other regions.”

House prices hit another record high in latest Halifax House Price Index

Published On: June 8, 2021 at 8:01 am

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Average UK house price rises again, Halifax House Price Index reports

The May 2021 House Price Index from Halifax reports that UK property prices continue to rise in 2021 as we head into the summer.

The highlights from the Halifax report include:

  • Annual house price inflation is now at its strongest level in nearly seven years
  • The average UK property price is £261,743, which is a new record high
  • Wales continues to be the region with the strongest price growth

Nationwide’s May House Price Index also reports house price growth is at the highest level in almost seven years.

George Franks, co-founder of London-based estate agents Radstock Property, comments: “May was a month of two halves. The first half was extremely busy as there was still a chance to purchase before the June Stamp Duty deadline. The second half of May and first week of June have been quieter, perhaps due to sunny weather, half term or everyone fleeing to Portugal. More likely, though, it is because there is no urgency as people have resigned themselves to missing the Stamp Duty deadline.

“Buyers now appear to be waiting to see what happens to the market after the end of June, possibly in the hope that prices will start to fall. This is especially the case in the sub-£800k bracket. It might take a few months to see how things pan out from July onwards. It will not be as simple as reducing asking prices, or indeed offers, by £15,000, as the Stamp Duty holiday was about sentiment as much as money and the fundamentals remain strong. 

“I don’t believe the property market is in a bubble, but it has certainly benefited from Government meddling in the form of the Stamp Duty holiday and mortgage guarantee scheme. We’ve effectively had two years rolled into one due to Government intervention. Looking forward, the fundamentals have not changed, namely money is cheap, it’s still cheaper to own than to rent and there is a profound lack of stock.”

Andrew Montlake, Managing Director of the independent mortgage broker Coreco, comments: “There is talk that the property market will fall flat on its face the moment the Stamp Duty holiday ends. That’s not going to happen. COVID-19 has triggered a socio-corporate shift that will drive transactions for some time yet as people seek more space to work remotely and proximity to the office becomes less important. The future of the property market, in the short to medium term, will be inextricably linked to our post-pandemic lifestyles.

“The pandemic has thrown the ‘location, location, location’ mantra that applied to the property market for so long into the dustbin of history. In the short-term, the Government’s mortgage guarantee scheme will continue to support demand among first-time buyers, and this will ripple up through the market and maintain a certain level of transactions. We’re not expecting a material fall in prices in the short- to medium-term, as supply is so low and money cheap, but a minor correction may be on the cards.”

Ged McPartlin, Managing Director of Ascend Properties, comments: “It’s great to see a changing of the guard in terms of the regions driving current house price performance. While London and the South East have traditionally acted as the predominant indicators of market health, it’s now the turn of Wales and much of the North to take centre stage.

“This regional acceleration has been largely driven by a far more affordable property price and a Stamp Duty saving that has allowed many buyers to increase their purchasing potential.”

James Forrester, Managing Director of Barrows and Forrester, comments: “Despite the prospect of a Stamp Duty saving now unlikely for many homebuyers the market continues to move forward at pace, driven by an appetite for homeownership not seen since before the financial crisis. While the expiry of the Stamp Duty holiday is expected to have some impact, it’s unlikely to derail a market that continues to see buyers enter in their droves, buoyed by low interest rates and 95% mortgage availability.”

Marc von Grundherr, Director of Benham and Reeves, comments: “It’s probably unfair to say London is lagging behind where the current property market boom is concerned, considering it was already streets ahead of the rest, to begin with. The higher price of property in the capital means that any increase is always going to be more measured but to assume the London market is on its knees couldn’t be further from the reality.

“Transactions are starting to climb, bolstered by both a return to the workplace and an influx of foreign buyers, and these influences will only boost the London market further as the year goes on.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “Enjoy the boom while it lasts because if history has taught us anything, a bust is likely to follow. The government’s insistence on artificially fuelling house prices, not only with a Stamp Duty holiday extension but now in the form of 95% mortgages and a rehash of the Help to Buy scheme, is irresponsible, to say the least.

“With the market already buckling under the pressure, it’s only a matter of time before it gives in, bringing property values down with it.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “House prices have done the treble with a third consecutive month of record highs and the stage is set for a most unusual summer.

“The inability of Britons to go on holiday means there’s no distraction now from executing that ambitious move to a larger home. We’re entering a time of year when school holidays and foreign trips normally force the market to drop to a slightly slower pace.  

“That’s not necessarily going to happen this year and sustained, strong demand over the next few months could have ramifications when the market cools in the autumn, delivering on paper what might look like a more rapid slow down.

“The sluggish figures for London still don’t tell the full story. House price growth in the capital is not exceptional as a whole, but it is still being powered by the same race for space that is driving the national market. Many buyers just can’t get what they want within budget after a relatively strong decade of gains. Location has become less important and space more so. 

“Prices are being routinely bid up on desirable properties and those selling the right home in London are matching the pace of the national market, achieving annual growth of more than 10%. It’s just not happening across the board and homes with as many flaws as ceilings are continuing to struggle. 

“Buyers will pay top dollar but only for the right property, otherwise it’s just not worth moving for many.”

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, comments: “This market is moving so fast that if you blink, it increases in value. It is incredible to watch when desire wrests control away from other factors during periods of exceptionally high demand like this and it could be about to get even busier.

“There are still some nervous homeowners out there who have been waiting for restrictions to ease before making their move, threatening to ratchet up the level of competition even higher over the next couple of months. 

“If the unlocking goes ahead later this month, this new blood, which until now has been cautious due to the pandemic, will enter the market and there will be even more buyers chasing the must-have properties of the year, namely detached homes with plenty of outside space. 

“Stamp Duty relief will be scaled back at the end of June but don’t expect this to have much impact. The behaviour of buyers driving house price growth at the top end nationwide still supports the view that they are solely focused on the horizon and not concerned with saving a relatively small amount of money on a purchase. 

“If the change to the Stamp Duty relief creates even a wrinkle in July that would come as a bit of a surprise.

“The market normally has a lull in the summer months but, now almost all foreign holidays appear to be off, there’s nothing stopping the freight train that is unbridled demand from crashing straight through June, July and August. It would take someone with a lot of courage to bet against this run of records being extended in June and even July.”

Iain McKenzie, CEO of The Guild of Property Professionals, comments: “Britain’s estate agents are almost running out of homes to sell as the moving frenzy continues to gather pace!

“Increased demand coupled with a shortage of properties for sale have caused prices to soar higher than the savings made from the Stamp Duty holiday, meaning many houses are selling for a premium. 

“While you’re enjoying the summer sun, spare a thought for the poor conveyancers who are overwhelmed by an epic backlog of paperwork.

“The slow phasing out of the Stamp Duty holiday is unlikely to calm the market, and house prices are likely to keep rising for the foreseeable future.

“Whatever happens, the rest of the summer has the potential to be a topsy-turvy time for the property market.”

New records for UK house prices continue in Rightmove’s latest House Price Index

Published On: May 20, 2021 at 8:00 am

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The commuter belt rental markets where tenants can reduce their rent by as much as half

The latest House Price Index from Rightmove reports Wales and the North of England have seen continued growth.

The highlights of the index include:

  • New records continue to be set as the average price of property coming to market this month jumps by 1.8% (+£5,767), to a third of a million pounds (£333,564)
  • Average London house prices are 2.9 times higher than prices in the northern areas of Great Britain, and although still large this is the smallest ratio recorded by Rightmove since 2013
  • While London prices have stood still (+0.2%) since the first lockdown, areas further north have seen double-digit increases, due to the shortfall in supply that suits people’s changed needs and lives
  • Wales leads the way at +13.0%, followed by North West (+11.1%), and Yorkshire & the Humber (+10.5%)
  • The north sees greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

James Forrester, Managing Director of Barrows and Forrester, comments: “Asking prices continue to climb at an alarming rate and this upward pressure is being driven by a number of factors. 

“Buyer demand remains extremely high and an appetite for larger homes is driving market activity. However, a lack of suitable stock to satisfy this demand is causing many to dig deep in order to offer above the odds and secure their desired purchase. 

“At the same time, savvy sellers are realising that buyers are not only entering the market with a budget boosted by the stamp duty holiday, but they’re doing so amidst an air of panic with the deadline fast approaching. Therefore, many are pricing far higher than the market value of their home to take advantage of this desperation. While they will inevitably reduce this expectation during the offers stage, this additional wiggle room still enables them to secure a higher price than they may have otherwise.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “It’s clear that sellers are attempting to cash in on the stamp duty holiday themselves by reaching new highs where unrealistic asking price expectations are concerned. In doing so they’re also crushing the hopes and dreams of many would-be first-time buyers who will now find themselves well and truly priced out of the market.

“It certainly doesn’t help when this hysteria is being driven by the likes of Rightmove, who continue to pull ‘record’ market statistics out of their hat on a monthly basis, much like a cheap magician at a children’s party. 

“Those hard-pressed to reach the first rung of the housing ladder may well have the last laugh though, as an already weary market continues to overheat. When the end of the stamp duty holiday does come and causes buyer demand to evaporate, we’re likely to see property values fall at pace.”

Marc von Grundherr, Director of Benham and Reeves, comments: “With the London property market moving at a steadier pace than the rest of the UK, we’re simply not seeing a spike in asking prices driven by home seller greed. Instead, the market is moving at a far more sustainable pace and while activity is starting to build, transactions are being agreed in a more sensible manner. 

“With the cost of buying at its highest in the capital, those that are transacting are in a strong financial position and so they simply aren’t as motivated by the incentive of the stamp duty holiday. While it’s certainly a nice cherry on top, it isn’t going to make or break their aspirations of homeownership and this more natural return to form will ensure a greater degree of long-term market health.”

Ged McPartlin, Managing Director of Ascend Properties, comments: “The Northern Powerhouse continues to drive overall market performance with the North West and Yorkshire, in particular, steaming ahead with some of the highest increases in property values. 

“The property market balance has well and truly tipped in favour of the North in recent months, driven by the fact that northern regions continue to offer a far more affordable foot on the ladder for homebuyers. 

“While the difference in property prices remains vast when compared to the likes of London, the north-south divide is certainly closing in terms of overall market pedigree.”

Read Rightmove’s full report here: https://www.rightmove.co.uk/press-centre/house-price-index/may-2021/

UK house prices continue to reach record high, Halifax House Price Index shows

Published On: May 11, 2021 at 11:03 am

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Average UK house price rises again, Halifax House Price Index reports

Halifax has released its April 2021 House Price Index, showing that house prices were 8.2% higher than the year before. The average UK house price is now £258,204.

The report findings also show:

  • House prices were 1.4% higher in April 2021 than in March 2021
  • House prices were 0.9% higher in the latest quarter (February to April) than in the quarter before (November to January)
  • House prices were 8.2% higher than in April 2020

Property industry reactions to Halifax House Price Index

Marc von Grundherr, Director of Benham and Reeves, comments: “Rishi’s rabbit out of the hat in the form of a stamp duty holiday really has been magic where the revival of the UK property market is concerned. House prices are booming, driven by a surge of buyers keen to save while also taking advantage of the continued low rate of borrowing.

“The question is, of course, whether this clever trick will help rejuvenate the market in the long term, once the curtain finally falls on Mr Sunak’s tax reprieve”

Ged McPartlin, Managing Director of Ascend Properties, comments: “Yet more mammoth rates of house price growth as the market continues to run red hot in the wake of the stamp duty holiday extension. While this has certainly been the touchpaper, we’re now seeing a number of other contributing factors helping to boost market activity. 

“The lifting of lockdown restrictions and the vaccine rollout has further buoyed market sentiment, causing more buyers and sellers to enter the fray with confidence. As we enter the busiest time of year for property sales, expect more of the same as transacting remains very much on the agenda for the UK.”

James Forrester, Managing Director of Barrows and Forrester, comments: “The UK property market is currently set to warp speed, make no mistake about it. We’re not just seeing a market recovering from last year’s pandemic paralysis, these current rates of house price growth are exceptional against any backdrop. 

“With the fuel tank full to the brim, it’s likely that any natural correction to this explosive rate of growth will come many, many months after the stamp duty holiday deadline and the likelihood is, this current rate of growth will remain throughout 2021.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “Yet further record rates of house price growth might seem like good news on the face of it, but this is far from the case. The UK property market is currently buckling under the pressure of yet another Government initiative to artificially fuel demand, without as much as a thought as to addressing supply.

“Not only this, but many sales are hanging in the balance due to a considerable market backlog which has added further uncertainty to an already archaic and unpredictable transaction process. 

“These aren’t the foundations of a strong and stable housing market and come the end of the stamp duty holiday, we can expect the gloss to come off quickly revealing what is likely to be a considerable mess.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “This market isn’t standing still for a second. The feeding frenzy for property was already feeling pretty ferocious but then along comes another big leap in the annual rate of growth. The new record high also leaves clear water behind it and the previous peak. 

“In a blazing hot seller’s market like this, most buyers don’t even compare prices locally to make their offer, they work out what can afford and they go for it. Timing is crucial and not wasting time is essential.

“At times like this, personality counts too. If a seller knows they’re going to get the price they need, then striking up a rapport with a vendor can really pay dividends. 

“First-time buyers are unfortunately seeing the market run away from them but, in their price bracket, the significant amount of accidental savings many will have accumulated over the past year will count for as much as the stamp duty relief, which has already been swallowed up by price increases since last summer.” 

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, comments: “The air is thin up here and, even though all buyers know in their hearts that things will calm down and growth will slow later this year, they are still frantically bidding up prices. Buyers need to be incredibly determined to succeed in a market like this. 

“Growth over 8% on an annual basis is always a massive vote of confidence in the country, its economy, its ability to create and protect jobs and its housing market. 

“Incredibly, the stage is set for this rally to continue and the market may be about to get its own vaccine bounce, like the one delivered to Boris Johnson this week. That broader optimism is still being complemented by improving weather, the imminent loosening of Covid restrictions, low interest rates, a yearning for more space and the fact that many homeowners have saved thousands of pounds not being able to go anywhere. 

“This won’t be the last record high we’ll see this year by a long stretch, and the figures next month will start to compare more impressively with the lull in growth caused by the first lockdown.”