House prices shoot up in April

House prices rose by 1.4% in April according to the Halifax, in the latest evidence of the resurgence of the housing market following chancellor Rishi Sunak’s March budget.

The mortgage lender said prices rose 1.4% over the month to a new record high, leaving the average cost of a home, at more than £258,000, 8.2% up on the same month last year.

The figures come after the Nationwide ten days ago reported that April saw the fastest monthly growth in prices since 2004, with the cost of a home up 2%.

On March 3 the chancellor extended the existing stamp duty holiday on properties worth less than £500k and introduced a new mortgage guarantee scheme designed to boost the availability of the 95% loan to value mortgages essential for first time buyers.

Russell Galley, managing director of the Halifax, said the continued growth meant almost £20,000 had been added to the average value of a home since the market came to a standstill in the first covid lockdown in April 2020, with demand boosted by the continued stamp duty holiday.

He said: “The influence of the stamp duty holiday will fade gradually over the coming months as it’s tapered out but low stock levels, low interest rates and continued demand is likely to continue to underpin prices in the market.

However, he said the short-term buoyancy will continue as buyers search for homes with more space, using savings built up over the months in lockdown.

Iain McKenzie, CEO of The Guild of Property Professionals, said the figures showed that the current “moving frenzy” showed no signs of abating. He said: “The continued success of the stamp duty holiday has played its part, but so has the number of house buyers who have re-evaluated where they want to live.”