House price inflation adds £7k IN A MONTH to take the average home to £264,000 despite stamp duty break fizzling out, official data shows ONS / Land Registry data

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  • Official figures show home prices have increased by 10.9 per cent till August 2021
  • Scotland has seen the biggest price increase: around 17% in a year
  • Average home price is now £264,000, £1,000 less than all-time high
  • Low mortgage rates are encouraging buyers – but that may soon change

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The price of a house increased by £25,000 in August due to the pandemic property boom, despite stamp duty holiday taping out, official data shows.

According to the latest House Price Index from the Office for National Statistics, home prices rose 10.6 percent over the 12-month period from the 8.5 percent increase seen in July.

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The average home value in the UK is now £264,000, up from £257,000 in July but £1,000 below the record high set in June.

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Hot market: a UK house now costs £264,000, a 10.6% increase over the last year

The specific price is highest in England, where prices have risen 9.8 percent in one year to £281,000.

But both Scotland and Wales saw larger percentage increases, with prices rising 16.9 percent to 181,000 pounds and 12.5 percent to 195,000 pounds, respectively.

In Northern Ireland, prices rose 9 percent to £153,000.

The hike in prices in the last one year has either been impacted by the government’s stamp duty holiday that was introduced in July 2020.

Buyers could save up to £15,000 as they were not required to pay tax on the portion of the purchase of the property for less than £500,000.

The average home price in the UK is now £264,000, up from £257,000 in July

The average home price in the UK is now £264,000, up from £257,000 in July

However, the tax savings would have had a limited impact on the housing market in August.

The stamp duty holiday ended on 30 September 2021 in England and Northern Ireland, 31 March in Scotland and 30 June in Wales.

This was reduced in England and Northern Ireland for the final three months, when buyers could save up to £2,500.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: ‘While these figures are a bit out of date, they once again demonstrate the resilience of the market, which was still rocking in August and the buyer at the time would be . Not able to take advantage of stamp duty tax exemption.

‘Continuous shortage of stock, low interest rates, unexpected savings and government support schemes are reducing buying and selling activity.’

Record-low mortgage rates with at least 0.86 percent interest are still encouraging buyers, however – they could rise especially if the Bank of England raises its base rate to curb rising inflation, as is the case. that many are prophesying.

Ian McKenzie, chief executive of the Guild of Property Professionals, said: ‘The number of properties available for purchase began to decline after the first lockdown and this trend is set to continue, while demand remains high.

‘Just as the end of the stamp duty holiday inspired a buying frenzy, predictions of an impending mortgage rate hike are also likely to motivate buyers.’

On the Market: This five-bed house in Siston Common, near Bristol, is listed on Rightmove with a price of £700,000.  It has four bathrooms, a large dining room and a fireplace.

On the Market: This five-bed house in Siston Common, near Bristol, is listed on Rightmove with a price of £700,000. It has four bathrooms, a large dining room and a fireplace.

In Andover, Hampshire, buyers can snap up this three-bed, semi-detached family home for £250,000.  It has no forward chain, generous garden and driveway parking

In Andover, Hampshire, buyers can snap up this three-bed, semi-detached family home for £250,000. It has no forward chain, generous garden and driveway parking

This two double bed apartment in Market Deeping, Lincolnshire is listed with a price of £180,000.  It sits within a gated complex and has designated parking and air conditioning

This two double bed apartment in Market Deeping, Lincolnshire is listed with a price of £180,000. It sits within a gated complex and has designated parking and air conditioning

Monthly property transaction data published by HM Revenue & Customs showed that the seasonally adjusted number of transactions stood at 98,300 in August 2021.

This is a similar level of monthly transactions that were seen before the start of the pandemic, and higher than the 74,470 seen in July, however, it is less than half of the 198,900 transactions done in June 2021.

Regionally, the North East was the region with the highest annual home price growth in August, with average prices increasing by 13.3 percent in the previous year.

Buyers in Leeds can buy this four bed semi detached home for £360,000.  It has no front chain and has front and rear gardens, and the master bedroom has an en-suite

Buyers in Leeds can buy this four bed semi detached home for £360,000. It has no front chain and has front and rear gardens, and the master bedroom has an en-suite

In Redditch, West Midlands, this three-bed semi-detached home is £250,000.  is sold in

In Redditch, West Midlands, this three-bed semi-detached home is £250,000. is sold in

The lowest annual growth was in London, where average prices rose by 7.5 per cent by August 2021, although this was an improvement from the 2.9 per cent seen in July 2021 and represents the strongest annual increase in London since August 2016.

Lucy Pendleton, property expert at independent property agents James Pendleton, said this showed that the housing market in the capital was turning a corner after suffering badly during the pandemic.

“London shows its true colors and triples the annual rate of growth, just as you think the rally might fade,” he said.

‘House prices in the capital have jumped nearly £28,000 in a single month, indicating that a return to normalcy has jolted the city back to life.’

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