House prices in England rose at their fastest pace since 2004 last month after the chancellor, Rishi Sunak, extended stamp duty relief on property purchases, a Nationwide survey suggests.
Property prices in England rose by 2.1 per cent in April. Compared to April 2020 this is a rise of 7.1 per cent.
The survey suggests that the property market is regaining momentum after a slight dip in January and February this year. Mr Sunak introduced the stamp duty holiday for all properties valued under £500k in July last year, in a bid to revitalise the property market.
Chief economist at Nationwide, Robert Gardner, said: “Housing market activity is likely to remain fairly buoyant over the next six months as a result of the stamp duty extension and additional support for the labour market included in the budget, especially given continued low borrowing costs and with many people still motivated to move as a result of changing housing preferences in the wake of the pandemic.”
Low interest rates, the stamp duty holiday, and pent-up demand for larger properties has helped the property market to defy the broader downturn in the economy during the pandemic and while economists expect the market to soften once the stamp duty holiday ends, they do not believe it will fall off a cliff edge.
For as long as the Bank of England keep intertest rates low and there remains a desire to move, the property market looks set to prosper in 2021.
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