Experts might not have expected that the UK housing market would be as resilient as it has proved to be during the pandemic, but the latest boost in growth was not a surprise. It was expected that the upcoming end to the stamp duty holiday would see a rush of home buyers trying to beat the 31 March deadline. According to a recent report from Nationwide, property buyers created a new record high average house price.

February’s average house price set a new level of £231,068.

The boost was expected, but not quite this level of strength from the boost. It is unexpected at what could happen to demand in the housing market if the tax holiday is extended, which is what is rumored to occur. Any announcement of the extension is expected during this week’s Budget Meeting.

In addition to a possible extension on the stamp duty holiday, there will be a scheme introduced to help those with smaller deposits buy a home. This will offer incentives to lenders which will bring back 95% mortgages alongside the low interest rates currently offered to home buyers and home movers.

Most would expect that demand will remain strong with incentives in place for lenders to open up mortgages to more buyers. Yet, some experts are concerned by the pandemic impacted employment situation making it difficult to keep buyers interested in the housing market.

Robert Gardner, Nationwide's chief economist, remarked, “It may be that the stamp duty holiday is still providing some forward momentum, especially given the paucity of properties on the market at present.

“Shifts in housing preferences may also be providing a more significant boost to demand, despite the uncertain economic outlook.

“Many peoples' housing needs have changed as a direct result of the pandemic, with many opting to move to less densely populated locations or property types, despite the sharp economic slowdown and the uncertain outlook.”

There is another factor that could keep optimism in the housing market and that is the coming of the spring season. It is a time when home sellers traditionally put property into the market, and that is because more buyers show up. Another significant boost could be right around the corner.