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HOUSE prices hit an all-time high last month after the biggest increase in more than 14 years wiped out losses seen during the lockdown.
The average cost of a home went up by £3,188 — or two per cent — to £224,123, according to the Nationwide building society.
It was the highest rise in a single month since February 2004, when prices jumped 2.7 per cent.
Nationwide chief economist Robert Gardner said ‘pent-up demand’ was partly driving the increase.
‘The bounce-back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions,’ he said.
‘This rebound reflects a number of factors. Pent-up demand is coming through, where decisions taken to move before lockdown are progressing.
‘Behavioural shifts may also be boosting activity, as people reassess their housing needs and preferences as a result of life in lockdown.’
A Nationwide poll in May found 15 per cent of homeowners were considering moving as a result of the lockdown.
The stamp duty holiday means the trend is likely to continue in the near term, but Mr Gardner warned of a slump if there is a rise in unemployment.
Chris Sykes, of mortgage broker Private Finance, said more homes could go on sale when the eviction ban ends next month but buy-to-let demand may be supressed by ‘negative publicity’.
Virgin Atlantic’s £1.2bn rescue plan takes off at the High Court
VIRGIN Atlantic said it is now in a position to ‘rebuild’ operations after a £1.2billion rescue plan was approved by the High Court in London yesterday.
The international airline had warned that it needed the refinancing package to ensure its survival after passenger numbers plunged 98 per cent as a result of the coronavirus pandemic.
The deal had to be signed off by judges to secure formal approval from some of the company’s lenders. It is expected to clear its final hurdle by winning approval in the US courts today.
Included in the package is £600million from owners Virgin Group and Delta Airlines, £450million of deferred payments to creditors and £170million of financing from US-based Davidson Kempner Capital Management.
‘Achieving this significant milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies, safely, as soon as they are ready to travel,’ the airline said in a statement.
It has cut 3,550 jobs and closed its operations at Gatwick airport as it seeks to weather the decline in air travel. It does not expect passenger numbers to return to pre-pandemic levels until 2023.
Stamps for Rupert on his 100th bearday…
RUPERT BEAR’S 100th birthday is being celebrated by Royal Mail, which is releasing four pairs of stamps showing scenes from his adventures. The children’s character is depicted in classic drawings from some of the more than 270 stories about him by Alfred Bestall. Writer and illustrator Mr Bestall took over in 1935 after the retirement of Mary Tourtel, who created Rupert for a newspaper comic strip in 1920.
Gym Group’s revenues almost halved amid pandemic
REVENUES at The Gym Group plunged 49.6 per cent to £37.2million for the six months to July 30, with the chain forced to close its 183 outlets during lockdown. The company also suffered a £26.9million pre-tax loss during the period, after recording a £5.5million profit 12 months ago. But membership numbers jumped 30 per cent year-on-year as gyms reopened, said chief executive Richard Darwin.
BUSINESS BITES
■ APPLE’S market value is now greater than the top 100 UK companies put together. The US tech giant’s shares rose yesterday to value it at £1.7trillion, compared with the £1.5trillion for the FTSE-100 index.
■ LEGO has seen sales grow as ‘families built more together’ in lockdown. Half-year sales rose to £1.86billion, up seven per cent on last year, after the Danish toy firm invested in growth initiatives.
