Average prices of housing properties across the UK reportedly reached new heights again in August 2021, with the property prices rising by 0.7% or £1,789 ($2,477).
According to the most recent Halifax House Price Index data, back-to-back monthly price jumps have now lifted the cost of a typical residential property to a record high of £262,954, surpassing the previous high of £261,642, which was recorded in the month of May.
Given the strong gains observed in the previous 12 months, August's price jump was considerably small, and the annual rate of residential property price inflation continued to slow down, reaching a five-month low of 7.1%; down from 7.6% in July.
However, prices are still more than £23,600 higher, or 9.9% up, as compared to June 2020, when the UK’s housing market started to open back from the very first lockdown due to Covid-19.
Russell Galley, Halifax Managing Director, stated that a majority of the impact from the national stamp duty holiday has already faded from the market, which is quiet apparent from the drop in the industry’s transaction volumes compared to a year earlier.
Although such government initiatives have given much-needed stimulus, other, substantial drivers of housing price inflation have emerged, Galley added.
As expected from the ongoing trends at the UK level, annual residential property price inflation is slowing across most nations as well as regions.
Wales continues to be the best-performing region, with the annual residential property price inflation standing at 11.6%, the UK's sole double-digit rise in August.
The South West continues to grow at a strong rate of 9.6%, reflecting on the ongoing trend of rural living within the region.
Some regions seem to possess more room for more strong price hike, with annual residential property price inflation in the North East currently at 8%.
Northern Ireland has seen prices climb even faster, with annual residential property price inflation of 9.3% in August, while Scotland's growth has slowed to 8.4%.