The latest house price index from the Land Registry for August 2021 show that average house prices in the UK increased by 10.6% in the year to August 2021, up from 8.5% in the year to July 2021.
The average UK house price was £264,000 in August 2021, which is £25,000 higher than this time last year.
Average house prices increased over the year in England to £281,000 (9.8%), in Wales to £195,000 (12.5%), in Scotland to £181,000 (16.9%) and in Northern Ireland to £153,000 (9.0%).
London continues to be the region with the lowest annual growth (7.5%) for the ninth consecutive month.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Although these figures are a little dated, they demonstrate once again the resilience of the market, which was still rocking and rolling in August even though buyers at that time would have been unable to take advantage of the stamp duty tax break. Continuing shortage of stock, low interest rates, unexpected savings and government support schemes are underpinning buying and selling activity.
“However, since August the market has calmed a little with more balance between supply and demand. Stock levels are still not increasing fast enough whereas worries about inflation and high interest rates are starting to have an impact.”
Marc von Grundherr, director of Benham and Reeves, added: “We’re now starting to see the London market accelerate through the gears where house price growth is concerned, with the largest monthly increase of all regions equating to a huge £28,000 jump in value in a single month.
“There are two predominant factors driving this market revival. The first is a return to normality both in a social sense, but also with regard to our professional lives and the physical workplace. This as led to growing demand from domestic buyers which has laid a firm foundation for onward growth.
“The second is an influx of foreign buyers who have had little choice but to sit on their hands during the pandemic due to widespread travel restrictions. Now that these are starting to lift, we’re seeing interest pour in from foreign lands and this is driving the market forward at speed.
“The tapered end of the stamp duty holiday and a potential increase in interest rates is unlikely to deter this interest and we can expect the London market to continue to strengthen over the coming months, regardless of what might happen elsewhere across the UK.”