London house prices hit record high of £525,893 in August 2021
Capital’s property market ‘turns a corner’ as UK average increases by £25,000 in a year
The average price for a property in London in August 2021 was £525,893 – the “highest on record”, according to the latest index by the Office for National Statistics (ONS). This was a £27,810 increase from the July average of £498,083.
While London remains the most expensive of any region in the UK, it also continues to be the region with the lowest annual growth for the ninth consecutive month. Average prices increased by 7.5% over the year to August 2021, up from 2.9% in July 2021, which represents the strongest annual growth in London since August 2016.
The 7.5% figure prompted one agent to describe the rise as “quite a jump”, Forbes reported. Lucy Pendleton, property expert at estate agents James Pendleton, said the capital has “turned a corner and we expect the London market to now mount a charge”.
Cory Askew, head of sales at Chestertons, said that while the “avalanche effect” of the stamp duty holiday has worn off, London has been “witnessing a return of office workers and growing influx of international buyers”. He added: “With demand for properties having remained strong, sellers have been less willing to give ground on their asking price. Although the month of August is traditionally quieter for the property market, this year’s performance has actually outperformed the five-year average in terms of buyer enquiries and viewings for August.”
Average price by property type for London
|Property type||August 2021||August 2020||Difference %|
UK average rises £25,000 in a year
The ONS data revealed that UK average house prices increased by 10.6% over the year to August, up from 8.5% in July. The average UK house price was £264,000 in August, which is £25,000 higher than this time last year. Despite the stamp duty holiday tapering out, the “pandemic property boom carried on”, ThisIsMoney reported.
Average house prices increased over the year in England to £281,000 (9.8%), in Wales to £195,000 (12.5%), in Scotland to £181,000 (16.9%) and in Northern Ireland to £153,000 (9%).
London was the region with the lowest annual house price growth, but the North East was the region with the highest, with average prices increasing by 13.3% in the year to August 2021 – up from 11.3% in July.
Annual house price growth rebounded in August from the dip seen in July following changes to the stamp duty holiday. “These figures tell the story of the ‘flight from the city’, with London prices increasing at the slowest rate in the country and Scotland roaring ahead,” said Sam Beckett, ONS head of economic statistics. “Scotland saw the highest growth in house prices and although London’s growth was once again the weakest, it has picked up significantly from last month’s trough.”