PHOTO: Many people have decided to move after being confined to their homes during lockdown, says Nationwide. Photograph: David Cheskin/PA
The UK’s biggest building society has warned of a “false dawn” in the housing market after reporting a 1.7% leap in prices in July.
Nationwide said the rebound had been powered by pent-up demand from those who wanted to move before lockdown. There was further demand from people deciding they wanted to move after being confined in their homes for several months.
But it said if companies continue to make people redundant, the market could slow down later in the year.
The property market has had a busy few weeks since it was released from lockdown in mid-May. Estate agents and lenders reported an immediate flurry of activity, which was boosted by the chancellor’s announcement of a stamp duty holiday of properties costing up to £500,000.
Nationwide’s figures put the average price of a UK home at £220,936, higher than in June but below April’s figure of £222,915. On a seasonally adjusted basis, prices have fallen by 1.6% over the past three months.
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