Figures out today revealed the average house price went up by 1.7% in September compared to the previous month providing further evidence of the impact of Covid on the property market.

The UK House Price Index shows the average property in the UK in September was at £244,513.

This data, although from two months ago, has highlighted the scale of the property boom and is interesting because it shows, more clearly than earlier data, the impact of the stamp duty holiday on prices.

Indeed, Nicky Stevenson, managing director at national estate agent group Fine & Country, said: “No part of the UK economy has flown over the Covid storm like the property market and the picture in September strengthened across the board.

“This is the first time the index will have included the first sales that didn’t only benefit from the stamp duty tax break but were prompted by it too, and it shows.”

Search for space

In line with other house price analysis, detached homes emerged as the market where prices had grown most significantly.

Indeed, the Land Registry’s figures showed these properties had increased in price by 6.2% since September 2019 and now had an average price tag of £375,492 compared to £353,533 at the same time last year.

Flats and maisonettes experienced the lowest growth over the past year, increasing by 2% in price.

Anna Clare Harper, CEO of asset manager SPI Capital, says: “Ultimately, increasing house prices are being driven by a combination of new priorities and new policy.

“Notably, many existing homeowners were spurred on to move by the combination of needing more space and the temporary stamp duty changes. As a result, and perhaps unsurprisingly, the increase in house prices was led by detached and semi-detached properties.”

Outlook

Although all the evidence is mounting that the UK has been in a property boom, most of the discussion following the release of today’s figures surrounded the sustainability of this epic growth.

Andrew Montlake, managing director of Coreco, thought prospects looked better thanks to the breakthrough regarding a Covid vaccine.

He said: “Record highs all round but ironically they’re not the main story right now. News of a vaccine that few expected so early could transform the trajectory of the property market during 2021.

“We were all bracing ourselves for a major reversal in recent house price growth but the vaccine could provide a shot into the property market’s arm.”

And Paul Stockwell, chief commercial officer at Gatehouse Bank, raised the issue of the prospect of a stamp duty holiday extension. He said: “Bank of England data has already indicated that mortgage approvals in September represented the highest levels of agreed borrowing since before the Global Financial Crisis more than a decade ago.

“But as pressure on the property industry resources grows, it will be interesting to see if the government concedes to requests from the industry to extend the stamp duty holiday and alleviate the expected congestion in the new year.”