The UK’s average house price increased by 11.8% over the year to September 2021, up from 10.2% in the twelve months to August 2021, according to data from the Office for National Statistics (ONS).
The average UK house cost a record high of £270,000 in September 2021, £28,000 higher than this time last year.
Growth in prices was fastest in the North West (16.8%), the East Midlands (14.7%) and the North East (13.3%), while growth was slowest in London for the tenth month in a row (2.8%).
According to the ONS, growing house prices can be explained by temporary changes to taxes on residential property sales, including the stamp duty land tax (SDLT), which may have allowed higher prices as buyers’ overall costs were reduced.
From July 2020, a SDLT holiday saw no tax incurred on property sales valued up to £500,000 in England, which was decreased to £250,000 from July before returning to its previous level of £125,000 at the end of September 2021.
Krishan Shah, researcher at the Resolution Foundation, said:
“Transaction volumes in September were far higher than is usual for this time in the year – suggesting buyers are making the most of the final month of stamp duty savings in England and Northern Ireland before the increase in the size of the nil-rate band ends completely.”
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