Double-digit house price rises won’t last, warns Knight Frank

The average UK house price rose by 10% over the year to May 2021, according to the latest ONS figures. However, the monthly increase was only slight, at 0.9% for the whole of April, and settling just £1,000 down from the record high of £256,000 seen in March 2021. Average house prices increased 9.7% over the year in England to £271,000, by 13.3% in Wales to £184,000, and 12.1% in Scotland to £171,000. Prices in Northern Ireland rose 6% to reach £149,000. London continues to be the region with the lowest annual growth – just 5.2% – for the sixth consecutive month. The high level of growth is unlikely to continue, according to Tom Bill, head of UK residential research at Knight Frank. “Despite house price growth reaching double digits, the second half of the year is unlikely to bear much resemblance to the first half for the UK housing market.” Knight Frank expects growth to fall to mid-single digits as the stamp-duty holiday winds down and supply picks up. Bill added: “In what may be a sign of things to come in the UK, housing market activity is now beginning to moderate in North American markets as the distortive effects of the pandemic recede.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Credit: West Midlands Combined Authority