House prices jumped by nearly £5,000 in August

House prices jumped by almost £5,000 in August - their second largest increase in more than 15 years, despite the tapering of stamp duty relief. Property prices increased by 2.1% month-on-month in August after falling by 0.6% in July, according to the Nationwide house price index. The increase in prices has lifted the value of the average UK home to £248,857, £4,628 higher than July’s £244,229. In London, the average home costs £511,190. Record low interest rates and a surge in pent-up demand have supported property prices, which are now 11% higher than a year ago. “The bounce back in August is surprising because it seemed more likely that the tapering of stamp duty relief in England at the end of June would take some of the heat out of the market,” Robert Gardner, Nationwide’s chief economist, said. “Underlying demand is likely to remain solid in the near term, but, as we look towards the end of the year, the outlook is harder to foresee. Activity almost inevitably will soften after the stamp duty holiday expires at the end of September.”

BBC News (01/09/2021)   Evening Standard (01/09/2021)   Financial Times (01/09/2021)