United Kingdom House Price Index2021 Data | 2022 Forecast | 1983-2020 Historical

The Halifax House Price Index in the UK jumped 7.4% year-on-year in September of 2021, higher than 7.2% in August and reversing the recent three-month downward trend as the stamp duty holiday draws to a close. On a monthly basis, house prices jumped 1.7%, the most since February 2007. The price of an average house is now as expensive as it has ever been, standing at just over £267,500. “Against a backdrop of rising pressures on the cost of living and impending increases in taxes, demand might be expected to soften in the months ahead, with some industry measures already indicating lower levels of buyer activity. Nevertheless, low borrowing costs and improving labour market prospects for those already in employment are likely to continue to provide support. Perhaps the biggest factor in determining the future of house prices remains the limited supply of available properties”, Russell Galley, Managing Director, Halifax, said.

The Halifax House Price Index in the UK rose by 7.1 percent year-on-year to a record of £262,954 in August 2021, the smallest gain since March as much of the impact from the stamp duty holiday faded. However, other significant drivers of house price inflation should continue to provide some support. “We believe structural factors have driven record levels of buyer activity - such as the demand for more space amid greater home working.", Russell Galley, Managing Director, Halifax, said. "Moreover, the macroeconomic environment is becoming increasingly positive, with job vacancies at a record high and consumer confidence returning to pre pandemic levels. Coupled with a supply of properties for sale that looks increasingly tight, and barring any reimposition of lockdown measures or a significant increase in unemployment as job support schemes are unwound later this year, these factors should continue to support prices in the near-term", he added.

House prices in the UK increased 7.6 percent year-on-year in July of 2021, the least since March mainly due to the strength of price inflation seen last summer, as the market began its recovery from the first lockdown, and with activity supported by the start of the stamp duty holiday. On a monthly basis, prices were up 0.4 percent, rebounding from an upwardly revised 0.6 percent drop in June. “Recent months have been characterised by historically high volumes of buyer activity, with June the busiest month for mortgage completions since 2008. This has been fueled both by the ‘race for space’ and the time-limited stamp duty break. With the latter now entering its final stages (the zero percent rate only applies to the first £250,000 of the purchase price, before reverting back to standard rates from October), buyer activity should continue to ease over the coming months, and a steadier period for the market may lie ahead.", Russell Galley, Managing Director, Halifax, said.