UK average house prices increased by 10.0% over the year to May 2021, up from 9.6% in April 2021, according to latest data from the Office for National Statistics (ONS).
Average house prices saw a slight monthly increase (0.9%) in the month to May 2021 to £255,000, nearly returning to the record UK average house price seen in March 2021 (£256,000).
Prices increased over the year in England to £271,000 (9.7%), in Wales to £184,000 (13.3%), in Scotland to £171,000 (12.1%) and in Northern Ireland to £149,000 (6.0%).
London continues to be the region with the lowest annual growth (5.2%) for the sixth consecutive month.
The ONS said that because of the impact of the coronavirus pandemic on both the number and supply of housing transactions, there may be larger revisions to the published House Price Index (HPI) estimates than usual. Fewer transactions are available than expected for the May 2021 estimate. As a result, there may be increased volatility in this month’s estimates, particularly at the lower geographical levels where transaction volumes are smaller.
Marc von Grundherr, director of Benham and Reeves, said: “It’s clear that the extension of the stamp duty holiday caused the market to rebound immediately from the decline in market performance seen as a result of the original deadline.
“Of course, it’s simply irresponsible to measure the health of the market based on a metric as erratic as the monthly rate of house price growth and anyone who seeks to do so would do well to retire their crystal ball to the cupboard from which it came.
“The real proof in the pudding is the extremely strong performance seen on an annual basis and one that continues to defy expectation despite fears the market could soon run out of steam.
“While London continues to trail the rest of the market in this respect, we’re beginning to see the cogs start to turn, driven by a return to the workplace and preemptive demand from foreign buyers in anticipation of a move later in the year. As a result, the London property market will continue to build momentum long after the carrot of a stamp duty reprieve has been removed.”