August sees house prices rise to 11%, up from 10.5% in July

Nationwide’s house price index shows annual house price growth increasing 2.1% month-on-month, rising from 10.5% in July to 11% in August – the second largest gain in 15 years with the average house price nearing £250,000. 

Nationwide's Chief Economist,Robert Gardner,commented:

"House prices are now around 13% higher than when the pandemic began. 

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. Moreover, the monthly price increase was substantial – at 2.1%, it was the second largest monthly gain in 15 years (after the 2.3% monthly rise recorded in April this year). 

The strength may reflect strong demand from those buying a property priced between £125,000 and £250,000 who are looking to take advantage of the stamp duty relief in place until the end of September, though the maximum savings are substantially lower (£2,500 compared to a maximum saving of £15,000 on a property valued at £500,000 before the stamp duty relief in England tapered). 

Lack of supply is also likely to be a key factor behind August’s price increase, with estate agents reporting low numbers of properties on their books." 

Highlighting the responsibility of estate agents to advise clients properly during this time, Oakley’s Residential Sales Manager, Andrew Hovey, adds:

“Demand from buyers across the board remains very strong and with stock levels as they are, we are continuing to achieve record prices for our clients in record time. With demand as it is at the moment, and offers being made within hours of properties being launched to market, it is important to ensure that the properties are exposed properly to the marketplace and that no rushed and potentially rash decisions are made. It is vitally important that the correct advice is given to our clients to ensure that the best price is achieved to the best buyer.”

Whether you’re looking to buy or sell our Residential Sales Team are ready and happy to assist you.

If you would like a free sales or rental valuation of your property or would like to be the first to know as soon as new homes become available, please contact your local Oakley Property branch.