Property prices have been pushed close to a record high after soaring by 10 per cent in the year to May, according to official figures.
The average house price across the UK in May was £255,000, nearly returning to the record seen in March of £256,000, the Office for National Statistics (ONS) said.
The North West was the region with the highest annual house price growth with average prices increasing by 15.2 per cent during the year to May 2021.
This was closely followed by the North East, at 11.8 per cent growth, as well as Yorkshire and Humber which saw a 11 per cent rise.
But the London market appears to be lagging behind after it witnessed the lowest annual growth with average prices increasing by just 5.2 per cent during the same period.
The capital’s average house prices however remain the most expensive of any region in the UK at an average of £498,000 in May 2021.
Property prices have been pushed close to a record high after soaring by 10 per cent in the year to May, according to official figures (stock image)
ONS head of economic statistics Sam Beckett said: ‘House prices grew 10 per cent in the year to May, continuing the trend seen in recent months.
‘Once again, it’s property prices in London that are showing the lowest annual growth, with the North West of England showing the strongest.
‘After dipping in April, UK average house prices saw a slight monthly increase in the month to May 2021 to £255,000, nearly returning to the record UK average house price seen in March.’
It is thought that the surge in house prices was fuelled by the introduction of a stamp duty holiday in July 2020 designed to boost the property market by helping buyers whose finances were affected by Covid.
It is thought that the surge in house prices was fuelled by the introduction of a stamp duty holiday in July 2020 designed to boost the property market by helping buyers whose finances were affected by Covid (stock image)
Chancellor Rishi Sunak in July 2020 exempted most buyers from the levy if they completed their transactions before March 31, 2021 – saving people up to £15,000.
The ONS report said: ‘As the tax breaks were originally due to conclude at the end of March 2021, it’s likely that this inflated March’s average house prices as buyers rushed to ensure their house purchases were scheduled to complete ahead of this deadline.’
Mr Sunak later announced an extension of the tax break in England and Northern Ireland which prompted a fall back in the number of transactions.
The stamp duty holiday in England and Northern Ireland will fully revert to its pre-July 2020 levels in October this year.
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