0

UK house prices increased by 8.9% in the year to April 2021, down from 9.9% in March 2021. On a non-seasonally adjusted basis, average house prices in the UK decreased by 1.9% between March and April 2021, compared with a decrease of 1.0% during the same period a year earlier (March and April 2020).

The UK Property Transactions Statistics showed that in April 2021, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 117,860. This is 179.6% higher than a year ago. Between March and April 2021, UK transactions decreased by 35.7% on a seasonally adjusted basis.

House price growth was strongest in the North East where prices increased by 16.9% in the year to April 2021. The lowest annual growth was in London, where prices increased by 3.3% in the year to April 2021.

Alan Boswell – MPU

See the economic statement.

The UK HPI is based on completed housing transactions. Typically, a house purchase can take 6 to 8 weeks to reach completion. The price data feeding into the April 2021 UK HPI will mainly reflect those agreements that occurred after the government measures to reduce the spread of Covid-19 took hold.

In England the April data shows, on average, house prices have fallen by 1.9% since March 2021. The annual price rise of 8.9% takes the average property value to £268,380.

The regional data for England indicates that:

  • the East of England experienced the greatest monthly price rise, up by 0.3%
  • Yorkshire and the Humber saw the lowest monthly price growth, with a fall of 3.7%
  • the North East experienced the greatest annual price rise, up by 16.9%
  • London saw the lowest annual price growth, with a rise of 3.3%

Price change by region for England

Region Average price April 2021 Annual change % since April 2020 Monthly change % since March 2021
East Midlands £213,308 9.3 -1.1
East of England £313,964 8.0 0.3
London £491,687 3.3 -2.0
North East £144,032 16.9 -1.7
North West £183,299 11.8 -2.6
South East £341,358 5.0 -2.3
South West £279,951 9.1 -2.3
West Midlands £216,973 11.2 -0.9
Yorkshire and the Humber £179,408 12.0 -3.7

Repossession sales by volume for England

The lowest number of repossession sales in February 2021 was in the East of England and the South West.

The highest number of repossession sales in February 2021 was in the North West.

Repossession sales February 2021
East Midlands 8
East of England 5
London 18
North East 23
North West 30
South East 20
South West 7
West Midlands 10
Yorkshire and the Humber 17
England 138

Average price by property type for England

Property type April 2021 April 2020 Difference %
Detached £412,888 £377,497 9.4
Semi-detached £255,589 £231,699 10.3
Terraced £219,577 £200,144 9.7
Flat/maisonette £230,172 £219,836 4.7
All £268,380 £246,424 8.9

Funding and buyer status for England

Transaction type Average price April 2021 Annual price change % since April 2020 Monthly price change % since March 2021
Cash £251,604 9.1 -2.1
Mortgage £276,754 8.8 -1.8
First-time buyer £224,786 9 -1.6
Former owner occupier £305,075 8.9 -2.1

Building status for England

Building status* Average price February 2021 Annual price change % since December 2019 Monthly price change % since January 2021
New build £333,823 10.8 0.5
Existing resold property £265,592 9.0 0.5

*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 fallen by 2.0% since March 2021. An annual price rise of 3.3% takes the average property value to £491,687.

Average price by property type for London

Property type April 2021 April 2020 Difference %
Detached £973,284 £921,807 5.6
Semi-detached £626,412 £585,408 7.0
Terraced £532,494 £502,673 5.9
Flat/maisonette £415,006 £412,702 0.6
All £491,687 £476,159 3.3

Funding and buyer status for London

Transaction type Average price April 2021 Annual price change % since April 2020 Monthly price change % since March 2021
Cash £503,642 0.5 -2.7
Mortgage £487,017 3.9 -1.9
First-time buyer £428,026 3.1 -2
Former owner occupier £558,597 3.4 -2

Building status for London

Building status* Average price February 2021 Annual price change % since December 2019 Monthly price change % since January 2021
New build £508,782 5.4 -0.5
Existing resold property £493,617 3.9 -1.8

*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 0.6% since March 2021. An annual price rise of 15.6% takes the average property value to £185,041.

There were 9 repossession sales for Wales in February 2021.

Average price by property type for Wales

Property type April 2021 April 2020 Difference %
Detached £279,864 £241,393 15.9
Semi-detached £181,164 £155,073 16.8
Terraced £143,012 £124,284 15.1
Flat/maisonette £124,317 £110,723 12.3
All £185,041 £160,039 15.6

Funding and buyer status for Wales

Transaction type Average price April 2021 Annual price change % since April 2020 Monthly price change % since March 2021
Cash £178,958 15.5 -0.5
Mortgage £188,548 15.7 1.0
First-time buyer £159,956 15.6 0.9
Former owner occupier £214,237 15.7 0.2

Building status for Wales

Building status* Average price February 2021 Annual price change % since December 2019 Monthly price change % since January 2021
New build £239,299 10.6 -1.0
Existing resold property £176,594 8.3 -1.0

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

Managing Director of Ascend Properties, Ged McPartlin, commented:

“Despite a cooling in the monthly rate of house price growth the northern property powerhouse continues to steam ahead, registering some extremely impressive gains on an annual basis.”

“This should continue for the remainder of the year, albeit at a less ferocious rate once a stamp duty saving is no longer on the cards, as buyers continue to take advantage of low mortgage rates and the newly available 95% mortgage.”

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

“There’s no doubt that this monthly decline in house price growth is the markets lagged response to the original stamp duty deadline, as buyers and sellers renegotiated terms under the impression a saving was no longer on the table.”

“However, it’s far from the market cliff edge that many naysayers had predicted and so it’s fair to say we can put any fears of a market crash in the wake of the extended deadlines to bed.”

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

“London has been slowly simmering in comparison to the rest of the UK market having been hit hardest by pandemic uncertainty and a reduction in foreign homebuyer demand, in particular.”

“However the tide is slowly starting to turn and while there’s a very real chance that the wider UK market will come off the boil by the end of the year, London will continue to bubble.”

Founder & Managing Director of Yes Homebuyers, Matthew Cooper, commented:

“Almost a full house of regional monthly house price declines in the wake of the original stamp duty holiday deadline gives a good indication of what awaits the market at the backend of this year.”

“A correction is on the way and we can expect to see a weary market start to show signs of house price fatigue as early as next month, following the initial wind down of the stamp duty holiday.”

Comment from Ross Counsell, chartered surveyor and director at GoodMove, on today’s ONS House Price Index and the seismic shift in buyer behaviour:

“According to the latest statistic from ONS, average house prices in the UK have yet again increased by 8.9%, and now stand at an average price of a whopping £265,000.”

“After a year of staggering prices, the continual increase of housing prices isn’t surprising at this point, but demonstrates an ongoing difficult period for anyone looking to buy a property in the UK.”

“However, although an increase of 8.9% is still high, in March this was 9.9% – so the decline in monthly growth rate last month holds optimism that house prices may begin to decline over the next six months.”

“What’s more, the Stamp Duty deadline comes into force at the end of June, with a staggered return to previous rates until September, so this can foresee a decline in house prices towards the end of the year.”

“The stats also showed that for the fifth consecutive month, London continues to be the region with the lowest annual growth at 3.3%, whilst the North East accelerates with an annual growth of 16.9%.”

“These statistics are very telling of a seismic shift in buyer behaviour to move away from big cities up to northern areas where house prices and the cost of living are, on average, significantly cheaper.”

“However, for anyone looking to buy a property, it might just be a good time to invest in the Capital.”

“For anyone looking to buy a property in the UK, I would advise them to hold off until October – once the Stamp Duty Holiday has finally come to an end.”

“Prospective buyers should look to be prepared, know exactly what they want in a property, and be ready to act fast.”

SUBSCRIBE
Subscribe to our weekly newsletter
Stay informed with our leading property sector news, delivered free to your inbox. 
Subscribe
Your information will be used to subscribe you to our newsletter and send you relevant email communications. View our Privacy Policy
Property Notify
Property Notify is a leading property sector publisher reporting on breaking news and political changes affecting the UK property industry, in addition to finance, tax and investment coverage we provide a hub to explore, contribute, invest in and celebrate the property industry. - Read more.

    Stamp Duty Holiday Downsides – Average Mortgage Deposit up £11k in Parts of The Property Market

    Previous article

    Super Prime London Transactions Hit Pandemic High but Remain Off the Pre-Pandemic Pace

    Next article

    You may also like

    Comments

    Leave a reply

    Your email address will not be published. Required fields are marked *

    More in News