Annual house growth accelerated to 10.6% in August, up from 8.5% in July as buyers rushed to beat the end of the stamp duty holiday, the latest official figures reveal.
Office for National Statistics data show that the average house price across the UK reached £264,000 in August, an increase of £25,000 compared to the same month last year.
Month-on-month prices were up 2.9% across the UK.
Scotland was the country with the highest annual growth, with prices up by 16.9% to £181,000; followed by Wales, where average prices were up 12.5% to £195,000; England, where prices rose 9.8% to £281,000; and Northern Ireland, where prices were up 9% to £153,000.
London was the region with the lowest annual growth for the ninth consecutive month, with prices up 7.5% year on year to £525,893.
However, at 5.6%, monthly growth in the capital was higher than anywhere else.
Jackson-Stops chairman Nick Leeming says: “While the market has somewhat cooled from the record levels seen earlier in the year, the figures released today show continued significant growth, evidence that the deeper changes in societal priorities are set to support consistently high levels of market activity in the longer term.
“This is emphasised in today’s regional data.
“The past 18 months has reminded homeowners what is so special about the English countryside and coast, and we’ve seen a renaissance in buyers’ love of country homes.
“Despite the South West being in the lower end of today’s figures nationally, annual house price growth continues to outstrip 8%.
“Our recent analysis showed that country and coastal homes in our South West branches had received the most interest over the summer with a 31% increase in demand per home over July and August 2021 versus the same time period in 2020. Indeed, across our portfolio we continue to see demand of 25 buyers per property on the market.”
He says that even though financial incentives to sell, combined with the desire to relocate to areas offering a higher standard of living contributed to frenetic activity, it was undeniably the unbalanced relationship between low stock and high demand that drove prices to the levels seen.
Leeming adds: “I expect we’ll see more stable activity over coming months, particularly as we now enter the traditionally active Autumn period.
“The next few months represent a good opportunity to move home as there continue to be many buyers looking for quality homes in great areas of the country.
“Britons still place a great deal of importance on buying and owning a home and shifts in attitudes and lifestyle expectations means that now, more than ever, homeowners will be willing to pay a premium for space and exclusivity.”
Guild of Property Professionals chief executive Iain McKenzie adds: “There are no signs that house prices are going to fall anytime soon and these figures show how property values have been inflated by surging demand.
“The underlying cause of this current wave of price rises is the shortage of stock available from estate agents.
“The number of properties available to buy started to dwindle after the first lockdown and this trend looks set to continue while demand remains high.
“Just as the end of the stamp duty holiday motivated a frenzy to buy, predictions of impending mortgage rate rises are also likely to spur on buyers.
“These figures tell the story of the ‘flight from the city’, with London prices increasing at the slowest rate in the country and Scotland roaring ahead.”
