UK-based Blend Network, an online P2P lender, reveals that April 2021 saw the largest monthly rise in United Kingdom’s house prices since February 2004.
According to the Nationwide House Price Index, average UK house prices increased by 2.1% in April compared to March after the Chancellor Mr. Rishi Sunak announced a package of measures to support local buyers, Blend Network noted while adding that these include everything from a stamp duty holiday extension, to a new mortgage guarantee scheme “to help people with a 5% deposit get on the property ladder.”
The Blend Network team added that when compared to a year ago, prices “were up by 7.1% in April.”
They also mentioned:
“In other words, prices are now up £15,916 since April 2020. We believe these policy measures are likely to continue to provide support to the housing market in the near-term. But the longer-term outlook remains highly uncertain and highly dependent on the speed of economic recovery and ongoing support for housing demand in the form of policy incentives.”
Last month, the average UK house prices grew by 7.1% YoY, which is notably the second highest increase “since December 2014,” Blend Network revealed while adding that “overall, the bounce back witnessed by the UK housing market in the aftermath of the first lockdown in March and April last year has been nothing short of astonishing.”
They pointed out that when we put it “in terms of tangible numbers, the price of the average UK house is now up by £22,428 compared with June last year.”
They added:
“Looking forward, we believe housing market activity is likely to remain fairly buoyant over the next six months as a result of the stamp duty extension, additional job market support, continued low borrowing costs and many people still motivated to move as a result of changing housing preferences in the wake of the Covid-19 pandemic.”
They also noted:
“We believe this to be particularly favorable to the market we serve at Blend Network: the low-cost, more affordable homes targeted at first-time buyers across the regions.”
Although the rollout of the vaccine in the UK and gradual easing of nationwide lockdown restrictions is boosting overall economic confidence, there are still “several uncertainties ahead,” the P2P lender confirmed. Blend Network also mentioned that the main issue or concern is “the risk of a sharp rise in unemployment towards the end of the year as most analysts expect” and in this scenario, there is “scope for housing market activity to slow [down.]”
As reported last month, Blend Network had said they were on track for a solid performance in April 2021.