UK house prices up 10.6% in the year to August

Average house prices in the UK increased by 10.6% over the year to August, up from 8.5% in the year to July 2021, according to data from the Office for National Statistics (ONS).

The average UK house price was £264,000 in August 2021, £25,000 higher than this time last year, and the second highest on record after an average price of £266,000 in June.

The increase in prices may have been due to the temporary stamp duty land tax (SDLT) holiday, the ONS suggested, as the tax break could have allowed higher prices as buyers' overall costs were reduced.

Another recent ONS study found that house prices in coastal and rural areas, such as North Devon, Hastings and Richmondshire, are increasing at the greatest rate.

Responding to Rightmove's House Price Index, which found house prices increased 1.8% between September and October, Mark Ross, managing director of Redbrik, said:

"Stock shortages continue to drive prices upwards, though accurate pricing rather than over-pricing is very important to get prospective buyers through the door. We expect prices to continue to rise, albeit at a steadier pace.

"We're advising sellers to start planning their moves for 2022 now by taking advantage of the blue skies and getting their marketing organised, so they're ready to go."

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