UK Property Market, the latest

Office for National Statistics

ONS UK house price index for June 2021 was published on 18 August and here are the main points:

UK average house prices increased by 13.2% over the 12 months period to June 2021. Compared to the month of May, the increase stands to 9.8% which is the highest annual growth rate since November 2004.

UK average house prices reached a new record high of £266,000 in June 2021, which is £31,000 higher than this time last year. The UK region with the highest annual house price growth in the North West where the average prices increased by 18.6% in the year to June 2021.

In March 2021, UK house prices reached £256,000 and 'were likely to be slightly inflated considering the buyers’ rush to purchases ahead of the original tax relief deadline.'  This effect has been further exaggerated in June 2021, due to the extension to the holiday on taxes paid on property purchases in England, Wales and Northern Ireland.

HM Revenue and Customs' estimated number of transactions in June 2021 reached 198,240 -  higher than the previous record of 183,830 transactions completed in March 2021.

Average prices in England reached £284,000 over the year, an increase of 13.3%. London continues to be the region with the lowest annual growth (6.3%) for the seventh consecutive month.

According to the UK Property Transaction Statistics the volume transactions in England in the year to April 2021 increased by 203.8%.

Across England, detached houses showed the biggest increase out of all property types, growing by 15.7% in the year to June 2021 to £438,000. The lowest annual change was in flats and maisonettes which increased by 8.2% in the year to June 2021 to £242,000.

Nationwide House Price Index

The annual national house price has slowed down according to the latest Nationwide House Price Index of 30 July ‘21.  Annual growth slowed to 10.5% in July, from the 17-year high of 13.4% recorded the previous month. In month-on-month terms, house prices fell by 0.5%, after taking account of seasonal effects, following a 0.7% rise in June.

“The modest fallback in July was unsurprising given the significant gains recorded in recent months. Indeed, house prices increased by an average of 1.6% a month over the April to June period – more than six times the average monthly gain recorded in the five years before the pandemic.’ says Nationwide.

Rightmove Market Trends Report

Rightmove reports a rising buyers demand in the first week of August (56% up compared to the same period in 2019, but down 17% on post-lockdown 2020) and forecasts an Autumn '21 bounce in prices and seller activity with more property coming to market when owners planning to sell have more clarity over their employers’ long-term balance of home and office working. The upper segment of the market, four bedroom-plus sector, is cooling down based on a reduced number of transactions. On the other hand, record price highs are recorded in the mass-market sectors that cater for first-time buyers and second-steppers. The average time for a newly listed property to be marked sold subject to contract is the quickest ever at 36 days, and the portal qualifies the current market as a ‘fast moving market’. 

England and Northern Island Stamp Duty Land Tax:

The nil rate tax band threshold currently stands at £250,000 and will revert to £125,000 at the end of September ’21 when the Stamp duty holiday expires.

 For the full ONS House Price Index report CLICK HERE

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