Property prices in UK have cracked the ceiling

Business | Reuters 20 Apr 2021

The average property price in the United Kingdom in April surged to a record high of 327,797 (HK$3.54 million).

The advertised prices for homes in Britain hit a new peak after Chancellor of the Exchequer Rishi Sunak stoked the market again by extending a tax cut for home-buyers last month, property website Rightmove said yesterday.

Asking prices jumped by 2.1 percent in the five weeks to April 10 - only the second time in five years that prices have risen by more than 2 percent from one month to the next, Rightmove also noted.

Besides the rise taking the average price of property going on the market to an all-time high K$3.54 million), Rightmove said, homes were selling in record-fast time.

Sunak had on March 3 announced he would extend a temporary tax break for buyers and also brought in a new mortgage guarantee scheme for first-time buyers who cannot afford large deposits.

The tax break was rushed out in 2020 to counter the economic hit from coronavirus.

It also helped to fuel a mini-boom in the housing market, which was already seeing strong demand from people seeking more space after their first lockdown.

Other measures of British house prices have also shown another rise since Sunak's announcement.

Rightmove also said its measure of available properties was at a record low.

But it added that "some of the froth is likely to come off this spring surge later in the year as the challenging economic conditions come to the fore.

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