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UK house prices increased by 11.8% in the year to September 2021, up from 10.2% in August 2021.

On a non-seasonally adjusted basis, average house prices in the UK increased by 2.5% between August and September 2021, compared with an increase of 1.1% during the same period a year earlier (August and September 2020).

The UK Property Transactions Statistics showed that in September 2021, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 160,950.

Select Property – MPU

This is 68.4% higher than a year ago. Between August and September 2021, UK transactions increased by 67.5% 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 West where prices increased by 16.8% in the year to September 2021.

The lowest annual growth was in London, where prices increased by 2.8% in the year to September 2021.

England

In England the September data shows, on average, house prices have risen by 2.9% since August 2021.

The annual price rise of 11.5% takes the average property value to £287,895.

The regional data for England indicates that:

  • the North West experienced the greatest monthly rise with a movement of 5.3%
  • London saw the lowest monthly price growth, with a fall of -2.9%
  • the North West experienced the greatest annual price rise, up by 16.8%
  • London saw the lowest annual price growth, with a rise of 2.8%

Price change by region for England

Region Average price September 2021 Annual change % since September 2020 Monthly change % since August 2021
East Midlands £231,318 14.7 4.9
East of England £327,982 9.3 1.7
London £507,253 2.8 -2.9
North East £152,776 13.3 3.8
North West £203,661 16.8 5.3
South East £370,886 11.7 3.0
South West £301,327 11.7 4.0
West Midlands £231,501 11.7 3.1
Yorkshire and the Humber £192,354 11.9 4.0

Repossession sales by volume for England

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

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

Repossession sales July 2021
East Midlands 7
East of England 5
London 13
North East 13
North West 23
South East 12
South West 9
West Midlands 9
Yorkshire and the Humber 10
England 101

Average price by property type for England

Property type September 2021 September 2020 Difference %
Detached £447,617 £394,660 13.4
Semi-detached £273,470 £243,296 12.4
Terraced £236,797 £210,491 12.5
Flat/maisonette £241,884 £228,668 5.8
All £287,895 £258,155 11.5

Funding and buyer status for England

Transaction type Average price September 2021 Annual price change % since September 2020 Monthly price change % since August 2021
Cash £269,903 11.3 3.1
Mortgage £296,869 11.6 2.9
First-time buyer £239,659 11.2 3.1
Former owner occupier £329,229 11.9 2.8

Building status for England

Building status* Average price July 2021 Annual price change % since July 2020 Monthly price change % since June 2021
New build £357,759 14.1 1.9
Existing resold property £263,010 5.4 -5.4

London

London shows, on average, house prices have fallen by 2.9% since August 2021.

An annual price rise of 2.8% takes the average property value to £507,253.

Average price by property type for London

Property type September 2021 September 2020 Difference %
Detached £1,035,215 £941,153 10
Semi-detached £658,301 £609,487 8
Terraced £554,568 £525,821 5.5
Flat/maisonette £422,054 £425,218 -0.7
All £507,253 £493,205 2.8

Funding and buyer status for London

Transaction type Average price September 2021 Annual price change % since September 2020 Monthly price change % since August 2021
Cash £516,420 0.7 -5.5
Mortgage £503,133 3.3 -2.3
First-time buyer £437,511 2.0 -3.0
Former owner occupier £583,667 4.0 -2.8

Building status for London

Building status* Average price July 2021 Annual price change % since July 2020 Monthly price change % since June 2021
New build £532,674 7.2 4.3
Existing resold property £497,872 2.9 -1.6

Wales

Wales shows, on average, house prices have risen by 2.5% since August 2021.

An annual price rise of 15.4% takes the average property value to £196,216.

There were 6 repossession sales for Wales in July 2021.

Average price by property type for Wales

Property type September 2021 September 2020 Difference %
Detached £301,194 £257,516 17.0
Semi-detached £187,935 £164,718 14.1
Terraced £153,280 £132,127 16.0
Flat/maisonette £129,167 £115,579 11.8
All £196,216 £170,030 15.4

Funding and buyer status for Wales

Transaction type Average price September 2021 Annual price change % since September 2020 Monthly price change % since August 2021
Cash £190,831 15.6 3.3
Mortgage £199,445 15.3 2.1
First-time buyer £168,657 15.0 2.2
Former owner occupier £228,652 15.8 2.7

Building status for Wales

Building status* Average price July 2021 Annual price change % since July 2020 Monthly price change % since June 2021
New build £269,287 19.8 3.5
Existing resold property £180,109 9.1 -6.1

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

“These latest figures certainly show the last of the stamp duty sizzle as homebuyers made a final push to secure a saving ahead of the extended deadline.

For almost every region of the UK to see annual growth hit double figures is quite remarkable and this uplift is being driven as much by first-time buyers as it is existing homeowners.

This phenomenal rate of growth is likely to slow over the coming months, not only in the wake of the stamp duty holiday but as the usual festive lethargy starts to build and many homebuyers and sellers now look beyond the Christmas period with a view to moving.”

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

“There’s no denying the huge impact of the stamp duty holiday on house prices and it’s only natural that this may start to subside slightly now the final curtain has fallen.

However, any predictions of a market crash are unlikely to come to fruition as the market remains in very good health.

We’re still seeing buyers enter the market at mass and with such high demand for limited stock, sellers are continuing to achieve a very good price for their property.”

Head of Corporate Partnerships at Sirius Property Finance, Kimberley Gates, commented:

“To date, the Bank of England have refrained from an increase in the base rate of interest and while this may materialise in a month’s time, the likelihood is that interest rates will remain close to historic lows for the majority of 2022, if not longer.

This means that while the cost of borrowing may start to climb marginally and slow the huge rates of house price growth seen in recent months, it’s unlikely to spook the market and deter homebuyers from transacting altogether.

We’re yet to see any notable knee-jerk reactions from lenders in anticipation and there remains a wide range of products available for those considering a purchase.

As always, the recommended approach is to put your best foot forward in the form of a sizable mortgage deposit, understand what additional fees you may incur and refrain from over borrowing to ensure you can easily stomach any increase in monthly repayments.”

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