UK house prices jump 7.4 per cent in a year
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Buying a home costs an average of 7.4 per cent more than it did a year ago with monthly prices rising at the highest rate for over a decade.
In September the average UK home cost £267,587, up from £249,122 a year ago and a jump of 1.7 per cent compared to the previous month, the highest monthly growth rate since February 2007.
It comes after the government introduced a stamp duty holiday on homes valued up to £500k, falling to £250k from July, to encourage home buying during the pandemic.
Russell Galley, the Managing Director of Halifax, commented on the data. He said “Perhaps the biggest factor in determining the future of house prices remains the limited supply of available properties.
“With estate agents reporting a further reduction in the number of houses for sale, this is likely to underpin average prices – though not the recent rate of price growth – into next year,” he added.
Strong demand for properties is in part being driven by a “race for space,” as repeated Covid-19 lockdowns have increased people’s interest in purchasing large homes outside London.
While prices for flats are up just 6.1 per cent, a £6,640 price increase, people are shelling out 8.9 per cent more for semi-detached properties and 8.8 per cent more for detached houses than they were a year ago, with detached properties now £41k more expensive.
Wales saw the largest annual growth in house prices of any region in the UK, with average costs surging by 11.5 per cent while in Scotland costs were up by 8.3 per cent. In London prices were flat, growing by just one per cent.
Read more: UK house prices growth eases back to 10 per cent with London slowing the most