Homes in Wales still show the fastest growth in the UK, but the unwinding of the stamp duty holiday has driven up the value of homes in the South East, according to the e.surv Acadata House Price Index.

The chartered surveyors’ report says house prices in Wales jumped 9.4% on an annual basis last month powered by the race for space sparked by the pandemic and the country’s attraction as a spot for a second home.

It says the average price of a UK home was £349,234, a monthly 1.7% rise, or 6% on annual basis.

However, the survey says the end of the stamp duty holiday in September, has led to the acceleration of house prices in the South East and the easing price rises in other regions.

E.surv director Richard Sexton says: “This strong continued performance in Wales has not been repeated across the country where regional fortunes have been turned on their head.

“There has been a significant change in the fortunes of areas such as the North West which has slipped from second place in June to eighth [in November 2021]. This is in contrast with the south eastern parts of England.”

House prices in the North West eased to 2.9% growth in November from 6.3% in October on an annual basis. The North East slipped to 2.1% growth in November from 5% in October. And Yorkshire and Humber slowed to 1.9% growth in November from 4% in October.

By contrast, house prices in the South East lifted to 7.6% growth in November from 6.6% in October on an annual basis. And Greater London jumped to 7.1% growth in November from 2.8% in October.

Sexton adds: “To understand why this has happened we need to appreciate the impact of the withdrawal of the stamp duty land tax in September.

“Our index over the past 12 months has already shown how the SDLT has impacted the UK house market over that period as a national incentive to stimulate activity.

“But now the index is reflecting the impact of the way it was ultimately withdrawn.

“The staggered reduction of the SDLT tax holiday proportionately helped those buying at the lower end of the price scale, when the savings to buyers were not insignificant if they were buying a property valued at £250,000 [the average price in the East Midlands is currently £251,604].

“But this saving is of lesser significance in the South East, where average prices amount to £443,778. The end of the SDLT holiday has effectively meant that the wealthier regions are now more prominent in the reporting.”