House Price Watch July 2021
Buyer demand in July softened for the first time in four months. This followed record transactions in June coinciding with the end of the main stamp duty holiday. However, with the number of homes available for sale depleted and more buyers than homes for sale, house prices have continued to climb.
What’s happening nationally
Annual house price growth remains at record levels. House prices are up on average +1.5% in the past month and +10.4% in the past year.
Indices based on:
Land Registry – registered property transactions in June. Nationwide & Halifax – mortgage valuations in July. Rightmove – asking prices posted on Rightmove in July.
*Rightmove is not included in the index average as the basis for its index is different (asking price vs agreed sale price)
|Index reports:||Monthly change||Annual change|
House prices in your area
Annual house prices have increased in all UK regions, with the highest rises in the North West of England (+18.6%), Wales (+16.7%), Yorkshire & Humber (15.8%), the North East of England (+15.3%) and the West Midlands (15.0%).
The most expensive regions in the UK are London (£510K), the South East (£356K) and East of England (£327K).
|UK Region||Average price £||Monthly change||Annual change|
|Yorkshire and The Humber|
|East of England|
|UK City||Average price||Annual change|
Busiest first half of a year recorded since 2007
Buyer demand remains strong
Housing stock further depleted as new seller instructions decline over the past month
Seller’s market continues with time to sell reducing further
How busy is the market?
- Transactions at record levels
- Total number of transactions in June 198K
- +74% from last month
- +219% higher than June last year
Homes for sale vs homebuyers
- Buyer enquiries down (-9% RICS)
- Seller enquiries down (-46% RICS)
- Average stock per agent 55; lowest stock in 6 months (incl under offer/ Sold STC Rightmove)
Average speed of sale
- 38 days to find a buyer down from 41 days last month (12 month average 52 days Rightmove)
What the experts say
“The first half of 2021 has seen a record number of moves when compared with the first six months of any other year, induced by the pandemic’s side-effect of a new focus on what one’s home needs to provide. Demand has also been boosted by the ongoing creation of new households, and property being seen as an asset to hold, with historically low returns from many other forms of investment. New stamp duty deadlines for sales completed by the end of June have also helped to exhaust the stock of property for sale and concentrate activity. This has left prospective purchasers with the lowest choice of homes for sale that we’ve ever recorded, continuing price rises, and stretched affordability.”
“The stamp duty changes drove the number of housing market transactions to a record high of almost 200,000 in June as home buyers rushed to beat the deadline. This was around twice the number of transactions recorded in a typical month before the pandemic and 8% above the previous peak in March 2021. Underlying demand is likely to remain solid in the near term. Consumer confidence has rebounded in recent months while borrowing costs remain low. This, combined with a lack of supply on the market, suggests continued support for house prices. But, as we look toward the end of the year, the outlook is harder to foresee.”
“Recent months have been characterised by historically high volumes of buyer activity, with June the busiest month for mortgage completions since 2008. This has been fueled both by the ‘race for space’ and the time-limited stamp duty break. Latest industry figures show instructions for sale are falling and estate agents are experiencing a drop in their available stock. This general lack of supply should help to support prices in the near-term, as will the exceptionally low cost of borrowing and continued strong customer demand.”
“Demand for houses is outstripping demand for flats. To a certain extent this trend will have been supported by the stamp duty holiday, with bigger savings on offer for larger properties – typically houses. But underneath this, there is a continued drumbeat of demand for more space among buyers, both inside and outside. That’s funnelling demand towards houses, resulting in stronger price growth for these properties.”
“The July 2021 RICS UK Residential Survey results signal a slightly softer month for new activity across the housing market, which is perhaps unsurprising following the start of the phasing out of the Stamp Duty holiday from the end of June. Even so, the lack of stock available at present continues to underpin house price inflation.”