United Kingdom: House prices continue to increase in September
September 30, 2020
According to the Nationwide Building Society (NBS), house prices in the United Kingdom rose 0.9% month-on-month in September, down from August’s 2.0% rise. September’s increase was supported by pent-up demand following the easing of Covid-19 measures, and the stamp duty holiday. In addition, Robert Gardner, Nationwide’s chief economist, stated that “behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown”. On an annual basis, house prices were up 5.0% (August: +3.7% year-on-year). The average house price in September was GBP 226,129.
However, the positive picture may not last, given the expected marked weakening of the labor market over the next few months as the furlough scheme ends.
Author: Oliver Reynolds, Economist