House Price Boom! My View...
The stamp duty holiday and rush to complete before the deadline at the end of the March has definitely distorted the latest house price index figure from the Office of National Statistics, in my view.
The data released today claims that the average property price in the UK has increased by 8.5% in the year to December 2020 to reach a record high of £252,000.
However, I strongly suggest that these figures don't reflect the true state of the housing market and have been skewed by the stamp duty holiday rush.
My take on the market as it is today is that it's now beginning to hold steady and that generally housing costs will still be affected by the differences between supply & demand, as well as, of course, the availability of mortgage funding across the sector, particularly for first time buyers.
Of course, there are also rumours about an extension to the stamp duty holiday, but if it doesn't happen, I'm not sure what'll happen to all those transactions in the queue to be completed!
Whatever happens in the short-term though, we still need longer term solutions for the housing market to continue to flourish, rather than seemingly knee-jerk reactions...
p.s. President Biden in the US has just announced a further period of 'payment holidays' for mortgage holders over the other side of the pond, for a total of up to 18 months! Wowza, eh?!?!