The figures are a timely remainder for house-hunters to do their homework to ensure that they don’t pay over the odds.
Commenting on the latest UK House Price Index, Myron Jobson, Personal Finance Campaigner, interactive investor, says: “House prices were slightly up in May, after dipping in April, which is indicative of a property market that was reeling from a rush to complete purchases ahead of the stamp duty holiday deadline at the end of last month.
“The housing market still has considerable momentum, powered by tapered stamp duty, which lasts until 30 September 2021 and continues to tilt the demand/supply seesaw in the favour of sellers.
“The figures are a timely remainder for house-hunters to do their homework to ensure that they don’t pay over the odds. Buying a house is one of the biggest financial decisions an individual will make in their lifetime. As such, it is important not to make rash decisions to take advantage of tapered stamp duty and proceed with caution.”
On inflation, Myron Jobson, says: “Inflation has once again overshot official estimates, as the nation continues to experience the unleashing of pent-up demand on the back of the Covid lockdown. A sustained overshoot of the Bank of England’s 2% target will put mounting pressure on the central bank’s interest rate committee. While it’s far too early to know whether cheap debt is on borrowed time, it’s pause for thought for anyone who might be tempted to bite off more than they can chew.
“Rising inflation continues to be a big problem for savers, chipping away at the purchasing power of their money sat in savings accounts paying a pittance in interest. While it remains good practice to keep a rainy-day fund whatever the inflation environment – three to six months’ salary is a good role of thumb - cash savings accounts are generally not the best places to put your money long term because it is eroded by the rising cost of living in real terms.
“But if you’re planning to put money aside for five years or more, a good option worth considering is the stock market. While it fluctuates on a day-to-day basis, when smoothed over time, a well-diversified portfolio can offer sensible way to help beat inflation.”
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