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UK house prices jump in August despite stamp duty holiday winding down – business live

12:29 AM

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Nationwide also warns that the outlook for the UK housing market is ‘still clouded’.

Despite prices accelerating in August, demand could weaken once the stamp duty holiday ends altogether in England and Northern Ireland this autumn, says chief economist Robert Gardner:

“Underlying demand is likely to remain solid in the near term. Consumer confidence has rebounded in recent months while borrowing costs remain low. This, combined with the lack of supply on the market, suggests continued support for house prices. But, as we look towards the end of the year, the outlook is harder to foresee.

Activity will almost inevitably soften for a period after the stamp duty holiday expires at the end of September, given the incentive for people to bring forward their purchases to avoid the additional tax.

August’s rise in prices has made pushed up the UK’s ‘house price to earnings’ ratio, a measure of affordability:

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from The Guardian https://ift.tt/3t1qDYB

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