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Double-digit rise in house prices in year to October

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Prices fell slightly between September and October but longer-term property price growth remains strong
Double-digit rise in house prices in year to October

The average price of a property in the UK was £268,349 in October, down by 1.1% from £271,000 in September, according to the UK House Price Index from HM Land Registry.

But property prices were still 10.2% higher than in October 2020, adding an extra £24,000 on the value of an average home.

House price growth was strongest in Wales where prices increased by 15.5% in the year to October 2021. The lowest annual growth was in London, where prices increased by just 6.2%.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “The post-stamp-duty-holiday comedown hasn’t been too depressing for house prices. When the tax break finished at the end of September, prices fell slightly from their record high, but they’re still well above their previous June highs.

“And while we’re likely to see rises continuing to slow over the coming months, there will still be structural pressures in the market keeping a floor under prices.”

Iain McKenzie, CEO of The Guild of Property Professionals, added: “Although we’re nearing the end of the year, it’s important to remember that this data is from the time when the stamp duty holiday had just ended.

“House prices eased across the UK as the rush to snap up property subsided, although this was only a gentle softening compared to the strong growth we’ve seen over the past year.

“Wales has seen the value of property rocket, with the nation reporting 15.5% growth in house prices, compared to 6.2% in London. The capital has seen inflated prices long before the pandemic though, so it’s worth bearing this in mind.

“With today’s inflation figures higher than expected, we could see interest rates start to rise in the coming months, potentially encouraging buyers to act sooner rather than later.”

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