Annual house price inflation has hit 13.4%, confirming predictions earlier this year that the overheating property market would send house prices spiralling upwards.
The latest figures from lender the Nationwide reveal that house prices are rising at the fastest rate for 17 years with rises in all regions and are 5% higher than in March.
This is the third month in a row the lender has recorded rising prices.
Strongest performances featuring double-digit growth during June were in Northern Ireland, Wales, Yorkshire & Humberside, the East Midlands, the North, South East and the North West.
London and Scotland also saw the most subdued, rising by a more subdued 7% over the past year.
“While the strength is partly due to base effects, with June last year unusually weak due to the first lockdown, the market continues to show significant momentum,” says Robert Gardner (pictured), Nationwide’s Chief Economist.
David Westgate, group chief executive of estate agency Andrews, say buyers trying to take advantage of the extended stamp duty holiday and the race for more space are pushing house prices ‘into the stratosphere’.
“It’s starting to feel like prices are freewheeling with buyers snapping up properties, particularly those with generous outside space, as soon as they come onto the market,” he says.
“The end of the full stamp duty holiday tomorrow may see activity cool a little, but not significantly, as there are plenty of buyers who still have time and the motivation to complete before the tapered relief ends on 30th September.”
MD of estate agency Barrows and Forrester, James Forrester (pictured) says the stamp duty’s influence on buyer demand is overstated.
“Once both the initial and extended [stamp duty] deadlines have expired, the fires of buyer demand will continue to be stoked by the availability of 95% mortgage products and very low interest rates,” he says.