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House prices have jumped 15% since pandemic struck

By Victoria Bischoff Money Mail Editor

HOUSE prices have soared by almost 15 per cent since the start of the pandemic, figures have revealed.

It means the average cost of a home in the UK has surged to £252,687 – a £33,104 rise compared to March 2020, according to data from Nationwide.

Experts had predicted the red-hot property market would cool after the stamp duty holiday was wound down at the end of September.

But prices surged in November, rising 10 per cent on the same month last year, and following a 9.9 per cent annual increase in October.

Yet economists warn the Omicron variant and an expected interest rate hike could cause prices to slump in the months to come. The property market was given a major boost when Chancellor Rishi Sunak announced a stamp duty holiday on properties worth up to £500,000. Buyers rushed to beat the September 30 deadline. But even since then, ultra-cheap mortgages, a low supply of properties and high demand from families seeking extra space have continued to push up prices. However, there have been signs of cooling housing market activity, with transactions down almost 30 per cent in October compared to the same month last year.

And experts have mixed opinions on what the future holds. Robert Gardner, Nationwide’s chief economist, said: ‘It is unclear what impact the new Omicron variant will have on the wider economy.

‘While consumer confidence stabilised in November, sentiment remains well below the levels seen during the summer, partly as a result of the cost of living.’

However, Dominik Lipnicki, director of broker Your Mortgage Decisions, said: ‘The property market remains strong across the board, with plenty of buyers looking to purchase a property.

‘House prices are likely to continue to rise in 2022 due to demand and the lack of stock but at a slower rate than we have seen in 2021. Even if the Bank of England increases rates to pre-pandemic levels, this will do little to dampen demand.’

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