Biggest surge in UK house prices in 11 years, report shows

July saw house prices in Britain jump by the highest percentage in 11 years. According to mortgage lender Nationwide, property prices in the UK leapt by 1.7% in July, the biggest monthly increase since August 2009 when the market started to recover from the financial crash.

The sharp rise in the cost of property is described as a sign that parts of the economy are rebounding as restrictions implemented in response to the Covid-19 pandemic are slowly eased.

As Robert Gardner, Nationwide chief economist said in a statement:

“The bounce back in price reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.”

Prices for property are an average 1.5% higher than they were this time last year. Nationwide expects prices to continue to rise for a short period, helped, in part, by the Chancellor’s temporary stamp duty holiday.

A further sign that the housing market is recovering following a stagnated period in the spring, is the fact mortgage approval rates are also rising. The Bank of England reported that approvals for mortgages quadrupled in June this year following hitting a record low in May.

With the property market in Britain showing optimistic signs of recovery with house prices jumping by their biggest monthly increase in 11 years, alongside increasing mortgage approval rates, not to mention Rishi Sunak’s cut in property purchase tax, now could be the perfect time to take advantage of the burgeoning market.

Buying at auction can be a great way to secure the perfect property for the right price. Take a look at the lots we’ve got listed in our next property auction so you can buy a dream property at a time when house prices are rising healthily, tax incentives are available to buyers and mortgage interest rates are at record lows.