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UK house prices increased by 8% in the year to July 2021, down from 13.1% in June 2021.

On a non-seasonally adjusted basis, average house prices in the UK decreased by 3.7% between June and July 2021, compared with an increase of 0.8% during the same period a year earlier (June and July 2020).

The UK Property Transactions Statistics showed that in July 2021, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 73,740.

Zeus – MPU 2

This is 4.2% higher than a year ago. Between June and July 2021, UK transactions decreased by 62.8% on a seasonally adjusted basis, following a record level of transaction numbers in June 2021.

House price growth was strongest in the North East where prices increased by 10.8% in the year to July 2021.

The lowest annual growth was in London, where prices increased by 2.2% in the year to July 2021.

England

In England, the July data shows on average, house prices have fallen by 4.5% since June 2021. The annual price rise of 7% takes the average property value to £270,973.

The regional data for England indicates that:

  • no region saw a monthly price rise. The South East experienced the smallest monthly fall with a movement of -1.3%
  • the North West saw the lowest monthly price growth, at -7.6%
  • the North East experienced the greatest annual price rise, up by 10.8%
  • London saw the lowest annual price growth, with a rise of 2.2%

Price change by region for England

Region Average price July 2021 Annual change % since July 2020 Monthly change % since June 2021
East Midlands £214,169 6.9 -5.5
East of England £312,076 6.8 -3.8
London £494,673 2.2 -2.0
North East £144,935 10.8 -3.5
North West £185,171 8.1 -7.6
South East £354,278 8.8 -1.3
South West £277,178 5.2 -5.8
West Midlands £220,759 8.5 -4.9
Yorkshire and the Humber £180,324 6.9 -6.8

Repossession sales by volume for England

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

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

Repossession sales May 2021
East Midlands 3
East of England 1
London 9
North East 20
North West 27
South East 12
South West 8
West Midlands 5
Yorkshire and the Humber 9
England 94

Average price by property type for England

Property type July 2021 July 2020 Difference %
Detached £414,849 £384,026 8
Semi-detached £257,831 £238,857 7.9
Terraced £220,117 £206,198 6.8
Flat/maisonette £237,188 £227,032 4.5
All £270,973 £253,226 7

Funding and buyer status for England

Transaction type Average price July 2021 Annual price change % since July 2020 Monthly price change % since June 2021
Cash £254,412 7 -4.6
Mortgage £279,273 7 -4.5
First-time buyer £226,474 6.7 -4.3
Former owner occupier £308,668 7.3 -4.7

Building status for England

Building status* Average price May 2021 Annual price change % since May 2020 Monthly price change % since April 2021
New build £351,308 11.7 -0.2
Existing resold property £264,010 8.7 0.1

London

London shows, on average, house prices have fallen by 2% since June 2021. An annual price rise of 2.2% takes the average property value to £494,673.

Average price by property type for London

Property type July 2021 July 2020 Difference %
Detached £958,038 £920,274 4.1
Semi-detached £617,088 £595,144 3.7
Terraced £521,993 £511,049 2.1
Flat/maisonette £427,462 £419,846 1.8
All £494,673 £483,830 2.2

Funding and buyer status for London

Transaction type Average price July 2021 Annual price change % since July 2020 Monthly price change % since June 2021
Cash £521,157 3.0 0.8
Mortgage £486,975 2.1 -2.6
First-time buyer £428,428 1.6 -2.2
Former owner occupier £565,960 3.1 -1.7

Building status for London

Building status* Average price May 2021 Annual price change % since May 2020 Monthly price change % since April 2021
New build £522,849 4.0 -2.4
Existing resold property £493,788 5.0 -0.5

Wales

Wales shows, on average, house prices have fallen by 4% since June 2021. An annual price rise of 11.6% takes the average property value to £187,960.

There were 7 repossession sales for Wales in May 2021.

Average price by property type for Wales

Property type July 2021 July 2020 Difference %
Detached £283,586 £253,927 11.7
Semi-detached £182,687 £163,302 11.9
Terraced £145,669 £130,681 11.5
Flat/maisonette £129,780 £116,803 11.1
All £187,960 £168,416 11.6

Funding and buyer status for Wales

Transaction type Average price July 2021 Annual price change % since July 2020 Monthly price change % since June 2021
Cash £182,321 11.7 -4
Mortgage £191,265 11.5 -4.1
First-time buyer £162,121 11.5 -4.2
Former owner occupier £218,162 11.7 -3.8

Building status for Wales

Building status* Average price May 2021 Annual price change % since May 2020 Monthly price change % since April 2021
New build £263,323 18.1 1.7
Existing resold property £181,891 14.3 1.3

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

“A prolonged period of property panic buying spurred by the chance of a stamp duty saving has seen UK homebuyers essentially clear the shelves over the last year.

So a natural market adjustment is always going to occur in the run-up to each of the staggered deadlines.

However, the proof in the pudding is yet another strong annual rate of growth and the reality is that there has been no let-up in demand, while available stock also remains scarce.

So where the long-term health of the market is concerned, we are yet to see any signs of a wobble.”

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

“While there is no snooze button this time around where the stamp duty deadline is concerned, the end of this government tax reprieve is unlikely to act as a pothole in the property market’s road to recovery.

A certain level of natural realignment is to be expected but those who judge the market on such an erratic, short term metric as monthly house price growth are ill-advised to do so.

We’re now heading into what is traditionally one of the busiest times of the year and we expect buyer demand to remain consistently high throughout.

We also expect the return of foreign buyer demand to further boost the UK housing market over the coming months, with London, in particular, seeing a sharp increase in market activity and house price growth.”

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

“Before we run for the hills at the first sight of a house price decline it’s important to note that the market has been moving at a record pace for a sustained period of time and so a pause for breath is more than natural.

We know the stamp duty holiday has had an incredible impact and so a monthly decline following both deadlines is to be expected.

However, market sentiment is still extremely high and while mortgage affordability remains at record lows, the housing market will continue to blossom well into autumn and beyond.”

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