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UK House Prices Decline for the First Time in 2021 in August

August 16, 2021 by Forex Winner Leave a Comment

UK House Prices Decline for the First Time in 2021 in August

Source: Rightmove

House prices in the United Kingdom fell for the first time this year in August, following a decline in demand for homes and the scaled-back tax breaks for homebuyers during the period.

  • The national average asking price stood at £337,371 in August, down 0.3% from the previous month to mark the first price decline so far this year. This is 5.6% higher year on year.
  • The decline was led by a 0.8% drop in prices of the upper-end, typically four-bedroom-plus sector to £616,421 from July’s £621,120.
  • Record-high prices were in the mass-market sectors with first-time-buyer-type properties up by 0.6% or £1,328 to £208,714 from July’s £207,386.
  • A new all-time high was also seen in three to four-bedroom second-stepper-type properties, which climbed 0.3% or £975 to £309,643 from July’s £308,668.
  • Rightmove Property Data Director Tim Bannister noted that sellers are asking prices lower amid the holiday season, but this may be less applicable this year with buyers staying closer to home.
  • Data shows that prices have only dropped in the upper-end sector, which is traditionally more hit by seasonal factors such as summer holidays and the withdrawal of stamp tax breaks.

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