House prices continued to boom in April, surpassing the record high set the month before, the Halifax house price index revealed. The average property will now set you back £258,204, a 1.4% increase month-on-month and 8.2% year-on-year. It is the highest annual growth rate in five years, with almost £20,000 being added to the value of the average house since April 2020.
Though the stamp duty holiday “continues to add impetus” to an already overheated market, its influence will gradually fade as it is tapered out over the next few months (it comes to an end at the end of June), says Russell Galley, managing director at Halifax. But low stock levels, low interest rates and relentless demand are likely to continue driving prices higher. And the £20,000 increase in house prices over the last year means the potential savings on stamp duty might not outweigh the inflated price of a new house, points out Iain McKenzie, CEO of The Guild of Property Professionals.
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