interactive investor comments on the latest ONS UK house price index.
- UK average house prices increased by 11.8% over the year to September 2021, up from 10.2% in August.
- The average UK house price was at a record high of £270,000 in September 2021, which is £28,000 higher than this time last year.
- Average house prices increased over the year in England to £288,000 (11.5%), in Wales to £196,000 (15.4%), in Scotland to £180,000 (12.3%) and in Northern Ireland to £159,000 (10.7%).
- London continues to be the region with the lowest annual growth (2.8%) for the 10th consecutive month.
Myron Jobson, Personal Finance Campaigner, interactive investor, says: “House prices were on the up yet again in September, ahead of the end of the stamp duty holiday with old rates coming back into play from 1 October.
“The stamp duty holiday turbocharged the housing market, which almost ground to a halt during the periods of Covid-19 lockdown. The promise of a lower tax bill resulted in a surge in house prices, with consumers racing to complete purchases ahead of the stamp duty holiday deadline. While house price growth is likely to slow, demand still significantly outstrips supply in many regions – especially London.
“Bumper house prices compounded by the uptick in the cost of living, with inflation more than double the Bank of England’s 2% target, means it remains tricky for many prospective first-time buyers to save enough to get on to the property ladder.
“There is some respite in the form of low deposit mortgages and low mortgage rates. However, with a rise to interest rates appearing imminent, with strong job figures strengthening the case for policymakers to raise the base rates in December to curb inflation, mortgages rates are likely to creep up – they already are.”
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.