Rise in UK house prices set to continue beyond the summer


Here at Advantage, as well as working with leading developers to provide structural warranty cover for multi-million pound developments, we’re also proud to work with a range of different clients – from social housing specialists to individual self-builders who are creating their dream homes.

Given our company’s role, working directly with clients who are building the homes of the future, it has been a busy period for Advantage, mirroring the rising activity levels in the construction sector and property market.

house for saleIn May, Nationwide Building Society said house prices would continue to rise this year beyond the stamp duty holiday but warned higher costs could make it harder for first-time buyers to get on the property ladder.

According to the Guardian, Nationwide’s chief executive, Joe Garner, said everyone had been a “little bit surprised” by how strong the housing market had been throughout the Covid crisis, even when taking government support, including business loans and wage subsidies, into consideration.

Back in March, Advantage looked at how the property market reacted to the extension of the stamp duty holiday. However, Joe Garner noted that there were other factors driving the current upturn in the property market.

“People don’t say: ‘Oh look, there’s a discount on stamp duty, let’s move home.’ That’s not how it works,” Garner explained. “People are thinking of their house less as an investment and more as a home.”

A Nationwide survey of homeowners last month found that 25% were either considering, or in the process of, buying a house as a result of the pandemic, compared with 28% in September. Usually, only about 5% of homes switch hands in the UK, meaning that only a small portion of those homeowners need to act in order to keep the housing market moving.

Advantage has written previously about how buyers upsizing to houses with gardens and space for a home office was initially driving demand. However, this month Rightmove reported that city centre locations and flats are staging a comeback in the housing market, with the easing of restrictions and the 95% mortgage guarantee scheme in particular helping drive demand

Figures published by the Office for National Statistics showed house prices rose 10.2% in the year to March, the highest annual increase since the lead-up to the financial crisis in August 2007.

Do you require a structural warranty for your project? The Advantage team is proud to work with clients on developments throughout the UK, adhering to all social distancing guidelines to ensure that projects are covered by the appropriate structural warranty. To find out more, call: 0845 900 3969 or email: sales@ahci.co.uk

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Advantage Home Construction Insurance (AHCI) provides structural defects insurance – operating nationally with offices in Warrington, London and Birmingham – offering development-related insurances and a service designed to give customers peace of mind.

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