Signs for house sale and for purchaseNationwide reported that the UK's house prices rose by 13.4% between November 2004 and June 2005, which is the fastest pace since November 2004.According to the building society, the average house price rose to 245,432 in June 2020 from 216.403 in June 2019.Robert Gardner, chief economist at Nationwide, said that prices are "close to a new record high" relative to average incomes. This makes it "even harder" for first-time buyers.According to him, the pandemic had "stimulated the housing market."According to Mr Gardner, many people have "reassessed their needs for home" due to the coronavirus lockdowns.He said that the pandemic was an unusual shock. It has stimulated the housing market rather than holding the market back, which is what normally happens."Nationwide's findings are based on its own mortgage data. The Nationwide stated that while prices were "unusually low" last year, the market still showed "significant momentum".Graphic showing the house priceThere was an increase in house prices across the UK in the second quarter 2021. However, the biggest increases were in Northern Ireland and Wales (14 and 13.1% respectively).The slowest rate for price growth was in Scotland where property values rose by 7.1%. London, England's weakest performing area, saw prices rise 7.3%.Gardner stated that despite rising house prices to "new highs", typical mortgage payments were "not high" by historical standards when compared to average take-home pay. This is mainly because mortgage rates are still at historic lows.Kevin Peachey is the Personal Finance correspondent.The stamp duty holidays are a major factor in house prices rising. This is supported by estate agent marketing and, most importantly, a Covid-related shift of priorities among buyers.Continue the storyThis is only a snapshot. There are many mini-markets in the UK housing market. Ask anyone trying to sell a house right now and they might feel like they are in another universe.It is not clear if this boom will be followed up by a bust.Some people will have to sell if the economy does not recover and there are no jobs. Fewer people will be interested in buying. If this continues and prices drop, then negative equity will be a real threat to new buyers who borrow heavily to purchase larger places to live and work.Factor Stamp DutyIn recent months, the market has been stimulated by stamp duties holidays in England and Wales as well as Northern Ireland.These tax breaks will be removed beginning Thursday and return to pre-pandemic levels by the end of October.Nicky Stevenson is the managing director of Fine and Country estate agents. She said that an annual house price increase of this magnitude was something no one expected to see, especially with the stamp duty holiday slowly fading out."The stamp duty scheme's final closure at the end September could have little impact because of other important factors, such as the race for space and accidental savings, and low interest rates.Analysts point out that the future of property prices will depend on how much there is demand for housing and the number of jobs available.Financial analyst at AJ Bell Danni Hewson said that unemployment would be closely monitored."How many people will be able to find work after the furlough program ends?" How many mortgage holidays can be used to sell quickly? She said that it is impossible to deny the fact that many people will find it difficult in the coming months once support is removed."
