House prices have been on the rise for more than a year, despite the Covid pandemic.
A temporary break in stamp duty costs for house movers served to stimulate the housing market, both in transactions and asking prices across the UK.
Lockdowns saw a race for more space, inside and outside the home, as working and social habits changed due to the different restrictions imposed to stop the disease from spreading.
This, coupled with the stamp duty holiday, saw demand outstrip supply across many areas of the UK - serving to push house prices up further throughout 2020 and the first half of 2021.
But, with the tapered stamp duty deadline approaching at the end of September 2021, here’s a look at the August 2021 housing market, according to the Halifax House Price Index.
What was the average house price in August 2021?
The average UK property price rose to a new all-time high of £262,954 in August 2021.
This is a 0.7% increase compared to July 2021, a 1.2% rise in the quarter and a 7.1% hike to house prices listed this time last year.
It means that the average UK house price has risen £17,352 in 12 months from £245,602 in August 2020 to £262,954 in August 2021.
There are of course regional variations to house prices, with properties in Greater London costing significantly higher (£508,503) than the rest of the UK.
Due to the location’s already high average price, it has seen the smallest increase during the Covid pandemic and over the past 12 months (1.3%).
What are the regional changes to average house prices in August 2021?
Wales has seen the largest annual percentage change in average house prices over the last 12 months, from August 2020 to August 2021.
An 11.6% rise in house prices has its average price now at £192,928.
Here is a rundown of average house prices across the UK regions for August 2021 - and the annual percentage change over the past year:
How many transactions were processed in July 2021?
There was a reduction in the number of UK home sales in July 2021, according to monthly property transactions data from HMRC.
UK seasonally adjusted residential transactions in July 2021 were 73,740 - down by 62.8% from June’s figure of 198,420.
The latest quarterly transactions, from May to July 2021, were approximately 14% lower than the preceding three months February to April 2021.
Transactions in July 2021 were still 4.2% higher than those completed in July 2020.
What does the latest Halifax House Price Index mean?
Halifax’s managing director Russell Galley said a positive economic outlook is likely to continue to "support prices in the near-term" future.
He said: “Much of the impact from the stamp duty holiday has now left the market, as highlighted by the drop in industry transaction numbers compared to a year ago.
"However, while such government schemes have provided vital stimulus, there have also been other significant drivers of house price inflation.
"We believe structural factors have driven record levels of buyer activity – such as the demand for more space amid greater home working.
"These trends look set to persist and the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax break comes to an end later this month."
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