If you're currently saving for your first home, you might want to look away now. The latest Zoopla house price index for August 2021 revealed that house prices have risen by £44 per day in the last six months.
House prices have rocketed since the coronavirus pandemic began back in March 2020. In that time the average house price has jumped up by a staggering £17,508. If you break it down, house prices have increased by £34 per day in that time.
However, the housing market particularly took off once lockdown lifted. The latest Zoopla report revealed that since February 2021 the daily increase of house prices has varied from £64 in the South East, £63 in the South West to £24 in the North East.
Average house price increase per day
On average, this means house prices have increased by £44 a day, £308 a week. To put that into perspective the average weekly shop for a family in the UK is £97 according to the ONS, making the weekly house price rise equivalent to an extra three weekly shops.
These new figures demonstrate just how much this year's house price growth has altered the daily savings target for anyone saving up for a new home.
The Zoopla house price index revealed that the annual house price growth had increased by 6.1 per cent in August. That makes it more than double the growth rates in the last 12 months.
Despite tax breaks such as the stamp duty holiday winding down, house price growth is expected to continue to grow.
Grainne Gilmore, head of research at Zoopla said that buyer demand remains higher than typical levels for this time of year.
'The demand coming from buyers searching for space, and making lifestyle changes after consecutive lockdowns, has further to run,' explains Grainne Gilmore, Head of Research at Zoopla.
'Balancing this, however, will be the ending of Government support for the economy via furlough, and more challenging economic conditions overall, which we believe will have an impact on market sentiment as we move through (the fourth quarter of this year).
'We expect the market to remain busy compared to historical norms, and for price growth to remain in firmly positive territory at the end of the year.'
This might be grim reading if you're saving to be a would-be homeowner. We say this with a heavy heart, but you might need to put that Aldi velvet chair order on hold to keep up.
