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UK house prices increased by 13.2% in the year to June 2021, up from 9.8% in May 2021. On a non-seasonally adjusted basis, average house prices in the UK increased by 4.5% between May and June 2021, compared with an increase of 1.4% during the same period a year earlier (May and June 2020).

House price growth was strongest in the North West where prices increased by 18.6% in the year to June 2021. The lowest annual growth was in London, where prices increased by 6.3% in the year to June 2021.

The Royal Institution of Chartered Surveyors’ (RICS) June 2021 UK Residential Market Survey reported another strong month for sales in the market, but that new buyer demand eased after the Stamp Duty holiday moved to its withdrawal.

Zeus – MPU 1

The Bank of England’s Agents summary of business conditions 2021 Q2 reported ongoing strong demand for housing across most of the UK and a shortage of properties for sale, which pushed up prices.

The UK Property Transactions Statistics showed that in June 2021, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 198,240. This is 219.1% higher than a year ago. Between May and June 2021, UK transactions increased by 74.1% on a seasonally adjusted basis.

The Bank of England’s Money and Credit June 2021 release reported that mortgage approvals for house purchases (an indicator of future lending) in June 2021 was 81,300, which is down slightly from May 2021.

Average house prices in the UK increased by 13.2% in the year to June 2021, up from 9.8% in May 2021.

At the country level, the largest annual house price growth in the year to June 2021 was recorded in Wales, where house prices increased by 16.7%.

Scotland saw house prices increase by 12.0% in the year to June 2021.

England saw house prices increase by 13.3% in the year to June 2021.

Northern Ireland saw house prices increase by 9.0% over the year to Quarter 2 (April to June) 2021.

England

In England, the June data shows on average, house prices have risen by 4.9% since May 2021. The annual price rise of 13.3% takes the average property value to £284,029.

The regional data for England indicates that:

  • Yorkshire and The Humber experienced the greatest monthly price rise, up by 7.1%
  • London saw the lowest monthly price growth, at 2.5%
  • The North West experienced the greatest annual price rise, up by 18.6%
  • London saw the lowest annual price growth, with a rise of 6.3%

Price change by region for England

Region Average price June 2021 Annual change % since June 2020 Monthly change % since May 2021
East Midlands £226,846 14.3 5.1
East of England £327,017 12.1 4.5
London £510,299 6.3 2.5
North East £149,521 15.3 5.9
North West £200,222 18.6 6.8
South East £355,948 10.5 2.7
South West £294,906 13.7 5.5
West Midlands £231,429 15 5.7
Yorkshire and the Humber £194,518 15.8 7.1

Repossession sales by volume for England

The lowest number of repossession sales in April 2021 was in the East Midlands and the South West.

The highest number of repossession sales in April 2021 was in the North East.

Repossession sales April 2021
East Midlands 5
East of England 9
London 6
North East 25
North West 23
South East 18
South West 5
West Midlands 14
Yorkshire and the Humber 21
England 126

Average price by property type for England

Property type June 2021 June 2020 Difference %
Detached £438,145 £378,757 15.7
Semi-detached £296,207 £236,968 13.6
Terraced £233,644 £204,932 14
Flat/maisonette £242,353 £224,025 8.2
All £284,029 £250,739 13.3

Funding and buyer status for England

Transaction type Average price June 2021 Annual price change % since June 2020 Monthly price change %since May 2021
Cash £267,190 13.5 5.2
Mortgage £292,532 13.2 4.8
First-time buyer £236,982 12.6 4.9
Former owner occupier £324,081 13.9 4.9

Building status for England

Building status* Average price April 2021 Annual price change % since April 2020 Monthly price change % since March 2021
New build £361,642 14.8 4.7
Existing resold property £263,634 9.1 -1.7

London

London shows, on average, house prices have risen by 2.5% since May 2021. An annual price rise of 6.3% takes the average property value to £510,299.

Average price by property type for London

Property type June 2021 June 2020 Difference %
Detached £994,785 £906,997 9.7
Semi-detached £646,936 £593,008 9.1
Terraced £555,562 £510,449 8.8
Flat/maisonette £430,707 £414,734 3.9
All £510,299 £479,969 6.3

Funding and buyer status for London

Transaction type Average price June 2021 Annual price change % since June 2020 Monthly price change % since May 2021
Cash £523,448 4.5 1.7
Mortgage £505,305 6.8 2.7
First-time buyer £443,193 5.9 2.8
Former owner occupier £581,605 6.9 2.2

Building status for London

Building status* Average price April 2021 Annual price change % since April 2020 Monthly price change % since March 2021
New build £551,112 10 5.7
Existing resold property £498,228 5.1 -0.9

Wales

Wales shows, on average, house prices have risen by 4.6% since May 2021. An annual price rise of 16.7% takes the average property value to £195,291.

There were 10 repossession sales for Wales in April 2021.

Average price by property type for Wales

Property type June 2021 June 2020 Difference %
Detached £296,313 £250,331 18.4
Semi-detached £188,119 £162,555 15.7
Terraced £153,582 £130,914 17.3
Flat/maisonette £127,629 £115,047 10.9
All £195,291 £167,384 16.7

Funding and buyer status for Wales

Transaction type Average price June 2021 Annual price change % since June 2020 Monthly price change % since May 2021
Cash £189,875 17.2 5.1
Mortgage £198,534 16.4 4.4
First-time buyer £168,655 16.4 4.7
Former owner occupier £226,344 17 4.5

Building status for Wales

Building status* Average price April 2021 Annual price change % since April 2020 Monthly price change % since March 2021
New build £267,427 22.1 6.6
Existing resold property £179,529 14.6 -1.8

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

“Another behemoth level of house price growth both on a monthly and annual basis, no doubt influenced by the first of the staggered extensions to the stamp duty holiday as homebuyers purchasing above the £250,000 threshold continued to scramble to secure a saving before the clock expired.

The London market has seen a lesser degree of property market manipulation as a result of the stamp duty holiday.

As a result, the capital continues to trail where property price appreciation is concerned but we’re seeing a far more stable market start to emerge and one that is showing greater long-term momentum as both domestic and foreign interest start to return.

Sales are increasing, sellers are achieving a greater level of asking price than they were just a few months ago, and all of these indicators suggest a property market resurgence is stirring.”

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

“The UK property market continues to flourish driven, in part, by the stamp duty holiday but also the ongoing trend for larger homes, with detached properties seeing a huge 15.6% annual increase.

We now know that the initial stamp duty deadline at the end of June has failed to dampen this appetite and the market cliff edge that many predicted is now starting to look very unlikely.

With buyer demand remaining extremely robust and stock shortages plaguing much of the market, it’s safe to say house prices will continue to climb throughout the remainder of the year.”

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

“We’ve seen an uplift in transaction levels in the last year alone and properties are now selling far quicker and for a much higher price.

However, it’s important to remember that when looking to buy in current market conditions you’re really facing a two-speed market posing very contrasting challenges.

The initial challenge is securing a property as they go under offer within weeks, sometimes days, of being listed for sale.

The cost of doing so is also going to be considerably higher and that’s something to factor in when looking to buy.

But beyond this point, there remain sizable delays and so the likelihood is that you won’t see your sale actually complete until some months later.”

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