Latest data released by Halifax - 10 May 2021
- Prior +1.1%
- House prices +8.2% y/y
- Prior +6.5%
Slight delay in the release by the source. The UK housing market continues to flourish amid the stamp duty holiday as the annual rate of growth in house prices jump to its steepest in five years - also helped by base effects as compared to last April.
Halifax notes that:
"The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the Government scheme. The influence of the stamp duty holiday will fade gradually over the coming months as it's tapered out but low stock levels, low interest rates and continued demand is likely to continue to underpin prices in the market.
"However, we do expect recent levels of activity to be sustained over the short-term as buyers continue to search for homes with more space and potentially better suited for their new working patterns. Savings built up over the months in lockdown have given some buyers even more cash to invest in their dream properties, while the new mortgage guarantee scheme may have eased deposit constraints for some prospective homebuyers who previously thought their first step on the housing ladder was a few years away.
"There is growing optimism in the long-term outlook of the UK economy as the vaccination programme continues at pace, yet we remain cautious about the medium-term prospects of the housing market. As we said in March, the current levels of uncertainty and potential for higher unemployment as furlough support ends leads us to believe that house price growth will slow to the end of the year."
