UK House Prices Carve Fresh Record Highs. Growth Slows to Five-Month Low

Source: Halifax

House prices in the United Kingdom soared to record-highs for the second straight month in August, even as growth slowed for the third straight month. IUKP is down 0.16%.

• Average house prices stood at £262,964 in August, surpassing the previous high of £23,600 recorded in May. This is also higher than the £245,602 in August 2020.
• Average house prices remain 9.9% higher than prices in June 2020 when the market reopened from the first lockdown due to the COVID-19 pandemic.
• August prices reflect a 7.1% annual change, the lowest in five months since April’s 8.4% climb. The pace of increases has cooled since June.
• The jump is attributed to demand for more space as more firms adopt flexible working arrangements. This is expected to continue moving forward.
• The stamp duty holidays now have minimal impact on the market, with the drop in industry transaction numbers. The remaining tax break will end this month.
• The annual house price inflation was biggest in Wales, while Greater London lags behind the rest of the country with a 1.3% increase in prices.