Annual Price Rise of 10.6% in Latest UK House Price Index

UK house prices increased 10.6% in the year to August 2021, up from 8.5% in July 2021. On a non-seasonally adjusted basis, average house prices in the UK increased by 2.9% between July and August 2021, compared with an increase of 1% during the same period a year earlier (July and August 2020).

The UK Property Transactions Statistics showed that in August 2021, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 98,300.

This is 20.9% higher than a year ago. Between July and August 2021, UK transactions increased by 32.0% on a seasonally adjusted basis, following a record level of transaction numbers in June 2021, and the subsequent reduction which followed in July.

House price growth was strongest in the North East where prices increased by 13.3% in the year to August 2021. The lowest annual growth was in London, where prices increased by 7.5% in the year to August 2021.

England

In England the August data shows, on average, house prices have risen by 3.2% since July 2021. The annual price rise of 9.8% takes the average property value to £280,921.

The regional data for England indicates that:

• London experienced the greatest monthly rise with a movement of 5.6%
• Yorkshire and the Humber saw the lowest monthly price growth, at 1.5%
• the North East experienced the greatest annual price rise, up by 13.3%
• London saw the lowest annual price growth, with a rise of 7.5%

Price change by region for England

Repossession sales by volume for England

The lowest number of repossession sales in June 2021 was in the East of England.

The highest number of repossession sales in June 2021 was in London.

Average price by property type for England

Funding and buyer status for England

Building status for England

*Figures for the 2 most recent months are not being published because there are not enough new build transactions to give a meaningful result.

London

London shows, on average, house prices have risen by 5.6% since July 2021. An annual price rise of 7.5% takes the average property value to £525,893.

Average price by property type for London

Funding and buyer status for London

Building status for London

*Figures for the 2 most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Wales

Wales shows, on average, house prices have risen by 2.8% since July 2021. An annual price rise of 12.5% takes the average property value to £194,575.

There were 6 repossession sales for Wales in June 2021.

Average price by property type for Wales

Funding and buyer status for Wales

Building status for Wales

*Figures for the 2 most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Head of Commercial at Nested, Alice Bullard, commented:

“We continue to find ourselves in a dramatically different place compared to just 12 months ago with property prices still showing phenomenal levels of growth, driven by high levels of buyer demand.

While mortgage rates remain at such affordable levels we’re unlikely to see any let-up in this tidal wave of activity that has washed over the market since it reopened.

However, it looks increasingly likely that we could see an increase in interest rates as early as the start of next year.

So those considering a purchase may want to act sooner rather than later to lock in the very best rates.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“Yet further proof that the drop in property prices following the initial stamp duty holiday deadline was merely a pause for breath in an otherwise marathon run of positive market momentum.

There’s little sign of this letting up and should an increase in interest rates materialise, the likelihood is that it will be fairly palatable for the average homebuyer.

Therefore, we don’t expect it to have any notable impact on the nation’s insatiable appetite for homeownership and the market should continue moving forward at pace well into next year.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“The current state of the market is quite remarkable given what we’ve been through as a nation since the start of last year.

Employment and wage growth have remained firm, mortgage affordability is still hovering around record lows and house prices continue to climb ever higher.

As a result, buyers continue to mob the market and while an interest rate hike is on the horizon, we expect these factors to continue to stimulate positive house price growth for the remainder of the year.

Forget about a shortage of HGV drivers, we need more estate agents to get us through until Christmas.”

Founder and CEO of GetAgent.co.uk, Colby Short, commented:

“A continued shortage of stock has seen the ball lie increasingly within the court of the home seller, as buyers fight it out to secure their ideal home.

As a result, buyers entering the ring can expect some stiff competition that will see them pay close to asking price, if not more, in order to come away victorious.

The best plan of attack is to be ready to act at a moment’s notice and if you are a cash buyer, ensure the seller is aware that you sit in a far more favourable position.”