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U.K. house prices grew at their strongest pace in almost seven years as consumers unleashed pent-up savings to gain more space after coronavirus lockdowns, Halifax Building Society said.
Prices grew 1.3% in May, driving the annual pace of growth to 9.5%, the mortgage lender said in a statement on Monday. That put the average cost of a home at 261,743 pounds ($369,895).
The report confirmed findings of Nationwide Building Society, which also showed prices growing at the fastest since 2014. The market is benefitting from a temporary tax-break on property purchases, a buildup in savings by consumers and confidence in recovery from the virus.
“While these effects will be temporary, the current strength in house prices also points to a deeper and long-lasting change as buyer preferences shift in anticipation of new, post-pandemic lifestyles – as greater demand for larger properties with more space might warrant an increased willingness to spend a higher proportion of income on housing,” said Halifax Director Russell Galley.
London prices grew more slowly than the rest of the country.
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