02 July 2021
Annual house price growth rises to 13.4%
House price growth in the UK has risen to its fastest pace since 2004, according to the Nationwide Building Society. Prices are up 0.7% month-on-month, after taking account of seasonal factors, pushing the average residential property price to £245,432 — a new high.
House price growth has speeded up since the government introduced the stamp duty exemption on the first £500,000 of primary residential property purchases. The full stamp duty holiday ends on Wednesday 30 June, and it will be tapered before it returns to the original rates on 1 October 2021.
Northern Ireland and Wales saw the largest annual gains in the second quarter, while Scotland and London registered the weakest growth. House price growth in the outer south-east region, which includes Oxfordshire, Bedfordshire and Berkshire, saw its first double-digit increase in seven years, with an average house price of £313,815.
In the outer Met region, which includes Buckinghamshire, Hertfordshire, Reading and Windsor and Maidenhead, house prices saw a rise of 8.2% with an average house price of £394,295.
The report added:
“Underlying demand is likely to remain solid in the near term as the economy unlocks. Consumer confidence has rebounded while borrowing costs remain low. But as we look toward the end of the year, the outlook is harder to foresee.
“Activity will almost inevitably soften for a period after the stamp duty holiday expires at the end of September, given the strong incentive for people to bring forward their purchases to avoid the additional tax. [But] there is also scope for shifts in housing preferences as a result of the pandemic, to continue to support activity for some time yet.”