(Alliance News) - UK house prices reached another record high in June, though property portal Rightmove on Monday noted signs of price inflation slowing.
The UK's housing market has grown in strength since the end of the first national lockdown last year. Since then, the sector has largely been spared from Covid-19 curbs. It also received a boost from the UK government's stamp duty holiday.
The average UK house price rose 0.8% monthly in June, to a new record of GBP336,073. Prices are now up 7.5% from March 2020.
However, Rightmove noted growth slowed considerably from May's 1.8% monthly hike. The 0.8% rise in June is still the highest for this time of year since 2015, Rightmove said.
The June figure is an "early sign of a slowing in the pace of the current hectic market", Rightmove said.
Rightmove Director of Property Data Tim Bannister said: "Since the market re-opened last May in England we have seen huge jumps in the numbers of sales being agreed, but these are now rising at a slower pace. Record low interest rates and stamp duty tax reliefs have helped many to afford higher prices, satisfying their pent-up desires for a new home fit for a new era. Some of that demand has now been met, and the phasing out of stamp duty reliefs has also taken away some of the urgency to move, though our high traffic and search data indicate that there is still strong buyer demand."
The UK government's stamp duty holiday was originally set to end in March. However, in March, Chancellor Rishi Sunak extended the stamp duty holiday from the end of that month until the end of June, and after this a new GBP250,000 threshold will apply until the end of September.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.