House prices up 10% to a new record average
The average house price has hit a record high
Last updated 2nd Jun 2021
House prices have gone up by over 10% in May compared to the previous year according to the Nationwide Building Society.
Their house price index went up by 10.9% annually in May, marking the strongest growth in nearly seven years.
Across the UK, property values hit a new record average of £242,832 – up by £23,930 compared with 12 months earlier.
What has made house prices go up?
The figures prompted debate among experts about whether the house price boom could be followed by a bust.
House prices were up by 1.8% month-on-month following a 2.3% increase in April.
Robert Gardner, Nationwide’s chief economist, said: “The market has seen a complete turnaround over the past 12 months.
“A year ago, activity collapsed in the wake of the first lockdown, with housing transactions falling to a record low of 42,000 in April 2020.
“But activity surged towards the end of last year and into 2021, reaching a record high of 183,000 in March.”
He said the spike in sales was helped by a stamp duty holiday, which was due to end in March but later extended.
He added: “A lot of momentum has been maintained. Our research indicates the extension to the stamp duty holiday is not the key factor, though it is clearly impacting the timing of transactions."
Other things people have bought during the last 12 months
Well it seems a lot of people have been buying houses, here are some other strange things people admitted to buying during the lockdown!