United Kingdom House Price Index1983-2021 Data | 2022-2023 Forecast | Calendar

UK house prices went up 5.4% yoy to an average of GBP 251,968 in January of 2021, lower than market forecasts of a 5.9% rise and following a 6% increase in December and a record 7.6% jump in November. On a monthly basis, house prices fell 0.3%, the most since April and compared to forecasts of a 0.3% increase. “There are some early signs that the upturn in the housing market could be running out of steam, with the annual rate of house price inflation cooling to its lowest level since August. Industry figures for agreed sales remain well above pre-pandemic levels but new instructions to sell have decreased noticeably, and total stock held by estate agents has risen to its highest level since before the EU referendum in 2016. Given the current time to completion across the market, transactions in the early part of 2021 probably don’t include many borrowers who expect to benefit from the stamp duty reprieve", Russell Galley, Managing Director at Halifax said.

UK house prices rose 6% from a year earlier in December to an average 253,374 GBP, the most on record, following a biggest on record gain of 7.6% in November supported by pent-up demand, a desire amongst buyers to move out of big cities in the wake of COVID-19 and the time-limited incentive of the stamp duty holiday. On a monthly basis, house prices increased 0.2% stretching the current run of continuous gains to six months. “In the near-term, and with mortgage approvals still sitting at a 13-year high, there may be enough residual strength in the market to sustain prices up to the deadline for the stamp duty holiday and the scaling back of Help to Buy at the end of March. However, with the pace of the UK’s economic recovery expected to be constrained by the renewed national lockdown, and unemployment widely predicted to rise in the coming months, downward pressure on house prices remains likely as we move through 2021”, Russell Galley, Managing Director, Halifax, said.

The Halifax house price index rose 7.6 percent from a year earlier in November 2020, the largest annual increase since June 2016, as the UK property market continued to show signs of recovery from the coronavirus-induced restrictions. House prices increased 6.5 percent since June, the strongest five-monthly gain since 2004. “The housing market has been much more resilient than many predicted at the outset of the pandemic, and indeed many households remain confident about further price growth next year. However, the economic environment continues to look challenging. With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”, Russell Galley, Managing Director, Halifax, said.

The Halifax house price index rose 7.5 percent from a year earlier in October 2020, the largest annual increase since June 2016, as the UK property market continued to emerge from coronavirus-induced lockdown. Over the past four months, house prices advanced 5.3 percent, the strongest since 2006. However, month-on-month price growth slowed considerably, down to just 0.3 percent compared to 1.5 percent in September. “This level of price inflation is underpinned by unusually high levels of demand, with latest industry figures showing home-buyer mortgage approvals at their highest level since 2007, as transaction levels continue to be supercharged by pent-up demand as a result of the spring/summer lockdown, as well as the Chancellor’s waiver on stamp duty for properties up to £500,000.", Russell Galley, Managing Director, Halifax, said.