Halifax house price index registers record high in July
House prices across the UK hit their highest mark in the history of the Halifax house price index in July, adding to the emerging view that the market is experiencing a surprising spike post lockdown.
House prices hit an average of £241,604 across the UK in July - up 1.6% month-on-month and 3.8% higher year-on-year as pent-up demand from lockdowns continues to be released into a largely open housing market, with a low supply of available homes also helping to exert upwards pressure on house prices.
While prices were still 0.2% lower quarter-on-quarter, Halifax said that Downing Street's decision to make a significant cut in stamp duty costs and evidence suggesting confidence was currently on the rise both seemed to indicate that the immediate future for the housing market "looks brighter than many might have expected" just three months ago.
However, Halifax did caution that uncertainty remained, with likely greater downward pressure on prices in the medium-term.
Halifax managing director Russell Galley said: "Looking further ahead, there is still a great deal of uncertainty around the lasting impact of the pandemic. As government support measures come to an end, the resulting impact on the macroeconomic environment, and in turn the housing market, will start to become more apparent.
"In particular, a weakening in labour market conditions would lead us to expect greater downward pressure on prices in the medium-term."