The highest jump in 11 years – that’s how much the cost of the average property in the UK increased last month according to the Nationwide Index. But then, things have been a bit crazy in general in recent months.
What it does mean though is that the predictions about the ‘V shaped curve’ – where the market fell then returned pretty quickly – weren’t that wrong, after all. Whether the right-hand side of that ‘V’ starts to flatten out though in the coming months is highly likely.
The Nationwide’s jump was 1.7% – the highest jump since August 2009. Mortgage approvals are back on course according to the Bank of England. But they are still 40% lower than in March pre-pandemic.
Overall house prices are 1.5% higher year-on-year. And that figure is expected to rise even more as prospective buyers make use of Rishi Sunak’s Stamp Duty holiday over the following eight months. Unless, that is, unemployment in October once the furlough scheme ends then results in a fall in demand.