In August, the average UK property price reached a record high of £262,954, according to Halifax.

The typical house price is more than £23,600 higher than in June 2020 when the housing market was starting to reopen, Halifax said.

Annual house price inflation was seen to slow to a five-month low of 7.1 per cent last month, Halifax added.

The strongest performing area continued to be Wales with its 11.6 per cent annual house price inflation making it the only double-digit rise recorded across the UK during August.

Also still seeing strong growth was the Southwest of England at 9.6 per cent, probably reflecting the ongoing demand for rural living within the region, the report said.



Some areas appear to have headroom for even stronger price growth, Halifax added, with annual house price inflation in the North East of England at 8 per cent.

In Northern Ireland, annual house price inflation was at 9.3 per cent in August.

In Scotland, house price growth slowed to 8.4 per cent.

Property values across the UK were up by 0.7 per cent month on month or £1,789 on average in August, following a 0.4 per cent increase in July.

Russell Galley, managing director, Halifax, said: “Given the rapid gains seen over the past 12 months, August’s rise was relatively modest and the annual rate of house price inflation continued to slow, hitting a five-month low of 7.1 per cent (versus 7.6 per cent in July).

“However, compared to June 2020, when the housing market began to reopen from the first lockdown, prices remain more than £23,600 higher (or 9.9 per cent).

“Much of the impact from the stamp duty holiday has now left the market, as highlighted by the drop in industry transaction numbers compared to a year ago.

“However, while such Government schemes have provided vital stimulus, there have also been other significant drivers of house price inflation.

“We believe structural factors have driven record levels of buyer activity – such as the demand for more space amid greater home-working.

“These trends look set to persist and the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax break (in England and Northern Ireland) comes to an end later this month.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “While property prices are still rising, the slightly more modest rate of growth reflects reduced intensity in the market compared with earlier in the summer.

“Then, buyers were desperate to take advantage of the full stamp duty holiday; now there are still moderate savings to be made but there is nothing like the same urgency.”

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said: “These prices are as much to do with stock shortages and cheap mortgage finance as activity.”

He added: “Market strength has not run its course and we are finding pent-up demand is alive and well, resulting in plenty of transactions, albeit at a lower level than we saw a few months ago.”

Average house prices and annual price growth in August, according to Halifax:

  • East Midlands, £218,112, 8.7 per cent
  • Eastern England, £306,169, 7.3 per cent
  •  London, £508,503, 1.3 per cent
  • North East, £154,629, 8.0 per cent
  • North West, £201,143, 9.5 per cent
  • Northern Ireland, £165,032, 9.3 per cent
  • Scotland, £185,953, 8.4 per cent
  • South East, £356,742, 6.8 per cent
  • South West, £272,719, 9.6 per cent
  • Wales, £192,928, 11.6 per cent
  • West Midlands, £222,830, 7.4 per cent
  • Yorkshire and the Humber, £184,918, 9.1 per cent