House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, the return of 95% mortgages and the stamp-duty holiday extension all play their part.

Property for sale signs
The property market shows no sign of slowing
(Image credit: © Jason Alden/Bloomberg via Getty Images)

The increase in house prices we’ve seen since the start of the pandemic can’t really be called a “mini-boom” any longer, with average property prices rising to record highs and demand slowly but surely outpacing supply.

As of March 2021 the average property in the UK was worth £254,606, up 1% from the £251,856 high of February according to the Halifax house price index, and up 6.5% from a year ago, or £15,430 more.

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.