By Legal Futures Associate Search Acumen
- UK average house prices increased by 10.6% over the year to August 2021, up from 8.5% in July.
- The average UK house price was £264,000 in August 2021, which is £25,000 higher than this time last year.
- London continues to be the region with the lowest annual growth (7.5%) for the ninth consecutive month.
Andy Sommerville, Director at Search Acumen, says: “These latest figures demonstrate how the supply-demand imbalance is continuing to drive up housing prices, albeit at a slower rate compared to price influxes in June 2021 due to an element of demand-side normalisation as the end of the Stamp Duty holiday loomed.
“While usually August is a slower month in the property market, nothing about recent months has been “normal” and house prices remain elevated. The low levels of housing stock combined with a sustained level of buyer demand suggest we will see an Autumn bounce in prices and seller activity that will extend into the Winter. Particularly as the commuter belt widens and work-life balance takes precedent over the train timetable, we are seeing buyers continue to look for new properties which allow for better standards of living.
“As the market continues to run hot despite the ending of stamp duty incentives, we eagerly anticipate the outputs of next week’s Budget. Given the benefits we have seen during the pandemic of an increasingly digitised property market, including improved efficiency and increased resilience, we would expect that a digital first approach would be front of mind. Public sector support combined with private property firms that can accelerate technological adoption is crucial if we are to future proof the property market.”
