House prices in the UK jumped 1.4% to hit £258,204 in April from March, according to the Halifax price index report. Prices were 0.9% higher in the February to April quarter compared to November to January period.
UK house prices gained 8.2% in April year over year, the highest annual rate of growth in five years.
UK stamp duty is seen to add momentum into the housing market, which has increased shortage of available homes and fueled prices higher.
Halifax Managing Director Russel Galley expects the influence of stamp duty to wane gradually as it is phased out.
Low interest rates and limited inventory is expected to drive prices amid the tapering of the stamp duty holiday.
Halifax expects the levels of housing activity to be sustained as buyers continue looking for more spaced-homes suited to new working patterns.
UK stocks are currently declining as the pound gains. FTSE 100 is down 0.050%, GBPUSD is up 0.97%.
