Yahoo Finance UK house prices see third month of double-figure growth
Average house prices in the UK increased by 10.2% in the year to October, the third month of double-figure growth, however this was down from 12.3% the month before.
According to the latest figures from the HM Land Registry UK House Price Index report, the average house price came in at £268,000 ($355,355), which was £24,000 higher than the same time last year.
But this was lower than the record level of £271,000 the month before as people rushed to close deals before the end of the stamp duty holiday in September.
Prices increased by 9.8% in England overall, while Wales saw a 15.5% rise and Scotland and Northern Ireland climbed 11.3% and 10.7% respectively. Northern Ireland remained the cheapest UK country to purchase a property in, with the average house price at £159,000.
On a regional level, London was the area with the lowest annual growth, at 6.2% while the East Midlands was the region with the highest, at 11.7%.
However, despite being the region with the lowest annual growth, average house prices in the capital were still the most expensive of any region in the UK at an average of £516,000 in October 2021.
In contrast, the North East continued to have the lowest average house price during the month at £148,000, having surpassed its pre-economic downturn peak of July 2007 in December 2020.
The figures came after the government’s stamp duty holiday wound to an end in September, a tax break designed to prop up the housing market, and help consumers as the economy contracted during the COVID-19 lockdowns.
In March this year an extension to the stamp duty holiday in England and Northern Ireland was announced, continuing until 30 June, after which the threshold decreased until 30 September.
Housebuyers could have cashed in on savings of up to £15,000 if they bought at the right time.
The break caused a frenzy in the market, with many using it as an excuse to make long-awaited moves or buy for the first time. However, some said that with climbing house prices during the past year, the discount was quickly priced in and that it "distorted" the market.
From 1 October 2021, the stamp duty thresholds have reverted to what they were before 8 July last year.
Read more: FTSE heads lower as UK inflation soars to decade high of 5.1%
“A marginal decline following the final curtain of the stamp duty holiday was always on the cards but a 1% monthly drop is far from the market collapse that many have been expecting,” James Forrester, managing director of Barrows and Forrester, said.
“The real proof in the pudding is the annual rate of appreciation and this is the third consecutive month where house prices have climbed by more than 10% year on year.
“Based on the market trends seen following the initial stamp duty holiday deadline, we can expect house prices to bounce back on a monthly basis ahead of the Christmas break, as many push to complete before Santa comes to visit.”
The ONS also revealed on Wednesday that private rental prices paid by tenants in the UK rose by 1.7% in the 12 months to November 2021, up from 1.6% in the year to October.
Private rental prices grew by 1.6% in England, 1.6% in Wales and 2% in Scotland during the period.
The East Midlands and the South West both saw the highest annual growth in private rental prices, up 3.1%, while London saw the lowest after slipping 0.1% thanks to a decrease in demand amid remote working.
Watch: How much money do I need to buy a house?
