UK house prices increased by 10 per cent in the year to May 2021, up from 9.6 per cent in April 2021. The average UK house price is £254,642.
On a non-seasonally adjusted basis, average house prices increased by 0.9 per cent between April and May 2021, compared with an increase of 0.5 per cent during the same period a year earlier.
House price growth was strongest in the North West where prices increased by 15.2 per cent in the year to May 2021, with the lowest annual growth in London, where prices increased by 5.2 per cent.
The Royal Institution of Chartered Surveyors’ May 2021 UK Residential Market Survey reported that increasing demand and a decrease of new instructions continues to drive house prices higher.
The Bank of England’s Agents summary of business conditions 2021 for the second quarter reported ongoing strong demand for housing across most of the UK and a shortage of properties for sale, which pushed up prices.
Average monthly price by property type.
The UK Property Transactions Statistics showed that in May 2021, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 114,940. This is 138.2 per cent higher than a year ago. Between April and May 2021, UK transactions decreased by 3.8 per cent on a seasonally adjusted basis.
The Bank of England’s Money and Credit May 2021 release reported that mortgage approvals for house purchases (an indicator of future lending) in May 2021 was 87,500, which is up slightly from April 2021 but lower than a recent peak of 103,400 in November 2020.