The cost of housing in England and Wales grew by 9.1% annually this July, according to e.surv’s latest housing report.
Logging a monthly change of 0.9%, this leaves the average house price at £336,003.
e.surv’s data shows the average house cost £27,900 more in July than it did in June. This compares to £32,500 being added to the June cost over May – which is when the annual growth rate hit 10.7%.
Acadata senior analysts John Tindale and Peter Williams put this down to the tapering down of the stamp duty holiday and the ending of the Welsh land transaction tax and the furlough scheme’s withdrawal.
However, they said, “Historically low-interest rates – which have made homes more affordable – and savings accumulated in lockdown, as well as lifestyle changes associated with a move to more spacious premises have all had an impact and will continue to play a part.
“Little wonder then that there are mixed views about how the housing market might evolve over the rest of 2021 and into 2022.”
The biggest monthly rise in England and Wales too place in Yorkshire and the Humber, where the average house price grew 1.7% in July (along with 14.7% annual growth). This was followed closely by the East Midlands, which clocked up 1.6% growth (12.3% annually).
The East of England saw only 0.4% monthly growth (10.2% annually), making it the poorest performing area by this metric in July.
e.surv director Richard Sexton comments: “In terms of transactions, we can see what a difference twelve months can make. In the first quarter of this year, we saw a 32% increase in transactions over the same period last year. The stamp duty holiday and the desire for more space when working from home clearly spurred many purchasers into action.
“What is more unexpected is that the area with the highest increase in sales this year is the South East, which belies the belief buyers were rushing to the countryside – in fact buyers have been rushing to secure detached houses but not in rural locations.
“The highest increase of detached property sales in the South East was in fact in Brighton and Hove which saw a rise of 140%. Proof, if any were needed, that urban living retains its allure for many moving out of bigger cities.”
