During the 2008 financial crisis, house prices plummeted as the market went into freefall. This time has been very different.
Figures from Nationwide suggest house prices are up 13.4% year-on-year1, and there are a few reasons for this. The government’s Stamp Duty holiday, combined with the lowest ever Bank of England base rate and a widespread desire among buyers for more space and larger gardens, have all fueled demand and driven prices upwards.
Secondly, the number of buyers has far outmatched the number of sellers, leading to a demand/supply imbalance and further accelerating price growth. Some areas have seen buyers putting in offers for properties they have never even viewed!
It is expected the market will gradually slow down as temporary measures come to an end.
Sources: 1Nationwide, 2021
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