- UK house prices are rising at their fastest rate since 2004
- High demand as country eases out of lockdowns, with low supply
- Some commentators are describing this as a ‘super-boom’
As the western world gets to grips with Covid – barring some nations which are experiencing horrendous outbreaks – a sense of elation and relief is helping feed various property market booms.
With the Australian and UK starting negotiations around a post-Brexit free trade agreement – something not possible when the UK was part of the EU – comes another shared reality, a fast rising property market.
Over in the UK, property prices are rising at their fastest rate in fifteen years. In Australia, in March this year they were rising the fastest in more than 30.
In April, UK average prices rose 2.1% as compared to +1.8% in Australia. House prices in the UK now average £238,831, or A$428,123, which is a new record. According to CoreLogic, Australian the median dwelling price (which includes houses and units) is A$624,997. That’s 45% more than the UK house price.
There are similarities as to causalities, with not only an easing of pandemic lockdowns, but also low interest rates (0.1%, the same rate as in Australia) and various government stimulus measures such as stamp duty holidays and first home buyer incentives.
Unlike Australia, some of these measures have been extended for another six months, such as on stamp duty.
The UK has ramped up its vaccination program – more than 34 million have received at least one dose, more than half the population. More than 15 million have had both doses. Australia is far behind on that measure.
UK Cumulative COVID Vaccinations, since January 2021
The UK is now coming out of lockdown (three or four, depending where you live) with pubs now open and more places getting back to normal. Stuck indoors for the best part of a year, many British people have stared at their property, and thought ‘We need more space… time to move.’
All this has fed into a sense of exuberance which could lead to what some commentators are describing as a ‘super boom’. It could continue for most of the year, experts predict.