Rapid growth in recent months saw UK property prices in August record their highest monthly rise for 16 years, underlining the sector’s resilience.

Summary:

• Average property prices in the UK have reached a new “all-time high” after their highest monthly increase for 16 years in August 2020
• Lender Nationwide attributes “pent-up demand” and “behavioural shifts” following lockdown as key drivers behind recent market activity
• Select Property Group recorded strong global investor demand for UK property in August, particularly from buyers in the Middle East and Hong Kong

Is this one of the best ways to illustrate the strength and resilience of UK property investment?

Nationwide, one of the UK’s major lenders, states that average UK property prices reached a “new all-time high” in August 2020.

As reported by the BBC, the average price increased 2% in August, the fastest monthly increase since February 2004, when it grew by 2.7%.

After a slow period of market activity when the UK went into lockdown, demand to buy and sell as restrictions have eased has been “unexpectedly rapid”, says Nationwide.

“This rebound reflects a number of factors,” explained Robert Gardner, Nationwide’s Chief Economist.

“Pent-up demand is coming through, where decisions taken to move before lockdown are progressing.”

Mr Gardner also alluded to “behavioural shifts” that are also directly impacting growth in the market. Life locked down in their homes has given people a chance to reassess what they desire from a property. Many are now actively taking steps to buy a property that is better suited to their needs and lifestyles.

“These trends look set to continue in the near term, further boosted by the recently announced stamp duty holiday, which will serve to bring some activity forward,” added Gardner.

Long renowned for its stability during times of wider economic uncertainty, UK property is proving to be one of the most popular global investments in 2020.

At Select Property Group, we have seen strong demand to buy UK property from our global investors. In particular, demand has been high from investors in the Middle East and Hong Kong. In August 2020, we sold 44% more UK property through our Dubai office and 62% more through our Hong Kong office compared to August 2019.

In July, a report from Savills predicted property in North West England would record 24.1% average property price growth by 2024, the highest increase of any UK region.

Manchester, the North West’s largest city continues to be one of the UK’s most in-demand cities for property investment.