House Price Watch June 2021
The average rate of annual house price growth hit double digits in June. Buyer demand remained strong despite the end of the stamp duty holiday and, with the number of homes available for sale at an all-time low, house prices have continued to climb this month.
What’s happening nationally
Annual house price growth is the highest it has been in our reporting history. House prices are up on average +0.4% in the past month and +10.7% in the past year.
Indices based on:
Land Registry – registered property transactions in May. Nationwide & Halifax – mortgage valuations in June. Rightmove – asking prices posted on Rightmove in June.
*Rightmove is not included in the index average as the basis for its index is different (asking price vs agreed sale price)
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House prices in your area
Annual house prices have increased in all UK regions, with the highest rises in the North West of England (+15%), Wales (+13%), Scotland (+12%), the North East of England (+11.8%) and the East Midlands (11%).
The most expensive regions in the UK are London (£498K), the South East (£350K) and East of England (£310K)
Liverpool and Manchester are the cities which have seen the biggest rise in house prices this year.
Regional house price data source: Land Registry May 2021 data and City house price data source: Hometrack May 2021 data
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|East of England|
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Transactions remain at their highest level since 2007. Transactions in May dipped (now on par with November 2020 levels).
Buyer demand remains strong but is beginning to fall off with high prices and a lack of properties available for sale.
Housing stock has been 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?
- Not busy
- Very busy
- Transactions at record levels
- Total number of transactions 115K
- -4% from last month
- +138% higher than May last year
Homes for sale vs homebuyers
- Good housing stock
- Normal housing stock
- Low housing stock
- Buyer enquiries up (+14% RICS) although well below peak of +43% in April
- Seller enquiries down (-34% RICS)
- Average stock per agent 56; lowest stock in 6 months (incl under offer/ Sold STC Rightmove)
Average speed of sale
- 41 days to find a buyer down from 45 last month (12 month average 55 days Rightmove)
What the experts say
“Despite the increase in house prices to all-time highs, the typical mortgage payment is not high by historic standards. However, house prices are close to a record high relative to average incomes. This makes it even harder for prospective first time buyers to raise a deposit. For example, a 10% deposit is over 50% of typical first time buyer’s income. A potential buyer earning the average wage and saving 15% of take home pay would now take five years to raise a 10% deposit. The improving availability of mortgages for those with a small deposit is helping some people over the deposit hurdle, but it is still very challenging for most.”
“With the stamp duty holiday now being phased out, it’s predicted the market might start to lose some steam entering the latter half of the year, and it’s unlikely that those with mortgages approved in the early months of summer expected to benefit from the maximum tax break, given the time needed to complete transactions.”
“Buyer demand remains very strong, though with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace.”
“Buyer demand remains elevated despite the initial stamp duty holiday ending – signalling that the once-in-a-generation ‘reassessment of home’ has further to run this year. The total stock of homes for sale remains below historical norms, and this will underpin pricing amid higher demand. At the same time, lower stock availability may also constrain potential activity.”
“The June 2021 RICS UK Residential Survey results point to another solid month for activity across the sales market, even though indicators capturing new buyer demand have eased somewhat as the Stamp Duty holiday moves towards its tapered withdrawal. Crucially, a scarcity of new instructions coming onto the market has become more prominent.”