Residential People can reveal that the average UK home is now over £22,000 more expensive than last year.
Figures shown in the latest Halifax House Price Index revealed that as of May 2021, house prices had increased by 9.5% compared to 2020.
April’s data from the UK’s longest-running monthly house price series showed record-breaking numbers. However, May has seen the average property increase by £3,000 (+1.3%) in just a few weeks.
The average UK house price now sits at £261,743, setting another new record. The annual house price inflation of 9.5% is now at its strongest level in nearly seven years.
Commenting on the report, Russell Galley, Managing Director, Halifax, said: “House prices reached another record high in May, with the average property adding more than £3,000 to its value in the last month alone.
“Heading into the traditionally busy summer period, market activity continues to be boosted by the government’s stamp duty holiday, with prospective buyers racing to complete purchases in time to benefit from the maximum tax break ahead of June’s deadline, after which there will be a phased return to full rates.
Russel adds: “All UK regions bar the North East saw an acceleration in year-on-year house price inflation last month. The strongest growth was once again recorded in Wales (up 11.9% over the past year), closely followed by the North West and Yorkshire & Humber, both of which posted double-digit annual growth. For Wales and the North West, these are the biggest percentage gains since April 2005, and for Yorkshire & Humber since June 2006.
“The South of England, traditionally the driving force of national house price performance, is for once lagging somewhat behind the rest of the country. This is especially the case in Greater London, where average prices are still 3.1% higher than a year ago but growing more slowly than the rest of the country. This likely reflects a weakness in city prices given the shift in preference for properties with more space, whilst recent surcharges on stamp duty for non-UK residents and Brexit concerns will also have weighed on the capital’s market.
“However it should not be forgotten that London property prices were already extremely expensive, having experienced a boom following the global financial crisis, a phenomenon not felt by many other UK regions and nations to anywhere near the same extent.”