UK House Prices – All The Latest News – Forbes Advisor UK

What’s the latest information on house prices? We monitor the leading indicators to keep you regularly updated about all the key moves in the UK’s property market.

UPDATE 15 July 2021 – Office for National Statistics UK House Price Index 

At-a-glance:

• Average UK property now worth just under £255,000
• Annual house price growth strongest in north west of England, sluggish in London
• Property transactions for May 2021 138% higher than a year earlier

The average price of a UK property was £254, 624 in May 2021, according to the UK House Price Index from the Office for National Statistics (ONS).

The ONS said that, on average, property prices had risen by 10% across the UK in the year to May 2021.

It added that the strongest house price growth over that period had been recorded in the north west of England with a return of 15.2%. London, meanwhile, recorded the most sluggish rise in annual growth returning a figure of just 5.2% in the year to May. 

According to the Bank of England, mortgage approvals stood at 87,500 for May 2021. The figure was up slightly from the previous month, but lower than the recent peak of 103,400 reported in November 2020.

Figures from UK Property Transaction Statistics estimated that 114,940 transactions on residential properties worth £40,000 had taken place in May 2021. This was a 138% increase in the figure recorded for the same month in 2020. 

UPDATE 7 July 2021 – Halifax UK House Price Index

Property prices fell in June for the first time since January, suggesting the UK housing market may be reacting to changes in the UK’s land tax regimes.

The average house price slipped to £260,358 last month, according to the latest data from the Halifax House Price Index. The figure was down 0.5% from the 14-year high of £261,642 recorded in May this year. 

However, the June figure is still £21,000 higher than it was at the same time last year – a year-on-year increase of 8.8%.

Halifax said the strongest regional growth over the past 12 months was recorded in Wales (12%), Northern Ireland (11.5%) and the north-west of England (11.5%).

Russell Galley at Halifax said: “With the Stamp Duty holiday now being phased out (in England and Northern Ireland), it was predicted the market might start to lose some early steam entering the latter half of the year. 

“It’s unlikely that those with mortgages approved in the early months of the summer expected to benefit from the maximum tax break, given the time needed to complete transactions.”

Forbes Advisor UK’s mortgage partner, broker Trussle, says there may still be time for people in certain English postcodes to complete their purchase before the final changes take effect on 30 September.

Between now and then, the Stamp Duty nil rate band stands at £250,000. It will revert to £125,000 from 1 October.

The holidays on the equivalent duties ended in Scotland on 31 March and in Wales on 30 June.

Miles Robinson at Trussle said: “While house prices have stalled month-on-month, it’s important to remember that annual growth remains strong. This is because prices have been driven by an imbalance between demand and supply for the past year.”

Nicky Stevenson at estate agents Fine & Country said: “The housing market has been running on rocket fuel for some time, but this is evidence that things may finally be starting to plateau. But there’s no suggestion we’re now facing a nosedive. Annual price rises across most of the UK remain impressive and make growth in previous years look rather mundane.”