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Official: Average UK house prices up 10% over last year

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House prices have defied all predictions to surge in the last year, and show little sign of slowing down
Official: Average UK house prices up 10% over last year

The average UK property price rose to £254,624 in May – 10% higher than a year earlier, according to the Office for National Statistics.

They rose by 0.9% between April and May alone.

House price growth was strongest in the North West where prices increased by 15.2% in the year to May 2021.

The lowest annual growth was in London, where prices increased by 5.2% in the year to May 2021.

At the country level, the largest annual house price growth in the year to May 2021 was in Wales, where house prices increased by 13.3%.

Scotland saw prices increase by 12.1%, England recorded growth of 9.7%, while Northern Ireland saw house prices increase by 6% over the last year.

Roger Evans, director of home finance at Gatehouse Bank, said: “House price growth has returned to form, bouncing back from the one-off fall in April, and we expect a further rise next month as the full impact of the stamp duty holiday extension emerges.

“Even with the biggest tax savings now behind us, there are no indications prices are going to slip back to where they were before the pandemic.

“Mortgage approvals – a primary indicator of how active the market is – still surpass pre-pandemic levels, highlighting that the stamp duty holiday is no longer the primary driver for home purchases.”

Nicky Stevenson, managing director at national estate agent group Fine & Country, added: “The remainder of the summer promises more breathtaking annual gains, with price growth in the North West continuing to set the pace.

“While the stamp duty holiday helped power the rally, momentum is now so strong that a phased return to full rates shouldn’t signal the beginning of a slump.

“And though growth in London remains the lowest in the country, it too is starting to pick up steam.

“Expect the tail of this boom to go on and on.”

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