Latest: House Price Crash News

Sunday, Oct 24 2021 Add a News Blog Article

Average House Prices Climb £7523 Between July & August 2021

Latest House Prices

''UK house prices increased by 10.6% in the year to August 2021, up from 8.5% in July 2021. On a non-seasonally adjusted basis, average house prices in the UK increased by 2.9% between July and August 2021, compared with an increase of 1.0% during the same period a year earlier (July and August 2020)'' - Land Registry

Posted by hpc pollster @ 10:55 AM 0 Comments

+1.7% MoM change & +7.4% Annual Change

September '21 House Price Data

“UK house prices rose by 1.7% in September, adding more than £4,400 to the value of the average property. This rate of monthly growth was the strongest since February 2007, pushing year-on-year house price inflation up to 7.4%. This also reversed the recent three-month downward trend in annual growth, which had peaked at an annual rate of 9.6% in May. The price of an average house is now as expensive as it has ever been, standing at just over £267,500.'' Russell Galley, Managing Director, Halifax

Posted by Old Man George @ 11:09 AM 1 Comments

September Annual House Prices Growth Slips Back & M.o.M Hits Just 0.1%

September - Latest House Prices

Annual house price growth eased back to 10.0%, from 11.0% in August. Prices little changed month-on-month, after taking account of seasonal factors Wales and Northern Ireland the strongest performing regions in Q3, London the weakest Cost of typical mortgage as share of take home pay above long run average in 10 of 13 UK regions, up from 1 pre-pandemic

Posted by hpc pollster @ 09:32 AM 2 Comments

Latest ‘Real’ House Prices

Q3 Inflation Adjusted House Prices

Real house prices slow from Q2 to Q3, as R.P.I [Retail Price Index] spikes...

Posted by Old Man George @ 09:31 AM 1 Comments

Latest Land Registry House Price Data [Huge M.o.M Drop]

UK House Price Index

"UK house prices increased by 8.0% in the year to July 2021, down from 13.1% in June 2021. On a non-seasonally adjusted basis, average house prices in the UK decreased by 3.7% between June and July 2021, compared with an increase of 0.8% during the same period a year earlier (June and July 2020). House price growth was strongest in the North East where prices increased by 10.8% in the year to July 2021. The lowest annual growth was in London, where prices increased by 2.2% in the year to July 2021."

Posted by Old Man George @ 11:54 AM 0 Comments

Why could house prices not have a 75% Haircut?

Evergrande Haircut of 75% Is Now a Base Case for Bond Analysts

Is there does not seem any difference in the leverage based property investment firm and a general household? A common new mortgage probably has lower capital than the companies who finds itself unable to pay its debt and interest.

Posted by deepak @ 09:46 AM 0 Comments

Record Highs BUT Annual Rate Continues to Slow

Latest: Halifax House Price Data [August]

Russell Galley, Managing Director, Halifax, said: “Average house prices climbed again in August, with the cost of a property increasing by 0.7% or £1,789. Back-to-back monthly price gains have now pushed the cost of a typical home to a record of £262,954, topping the previous high (£261,642) recorded in May this year. “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 comes to an end later this month.

Posted by Old Man George @ 07:27 AM 0 Comments

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UK House Prices Graph

The UK average house price is now £264,244. 

  • As of August 2021 the UK Average House Price is £264,244.
  • The House Price Index [HPI] now currently stands at 138.6
  • Property prices have risen by 10.60% when compared to the same month last year and have increased 2.90% when compared to the previous month.

Source: Land Registry

average house price uk national index

UK House Price Index

Source website Period covered Average house price Monthly change (%) Annual change (%) Official releases
LSL Property Services & Acadametrics (England and Wales) Apr 21 £341,462   0.70   11.7 April 2021 (PDF)
Halifax House Price Index Sept 21 £267,587   1.70   7.40 Sept 2021
Office for National Statistics [O.N.S] Aug 21 £264,000    2.90   10.6 Aug 2021
Zoopla / Hometrack – Monthly National Survey Aug 21 £235,000   6.10 Aug 2021
HM Land Registry UK HPI Aug 21 £264,244    2.90   10.6 Aug 2021
Nationwide House Price Index Sept 21 £248,742   0.10   10.0 Sept 2021
Rightmove ‘Asking’ Price Index Sept 21 £338,462    0.30   5.80 Sept 2021

 

House Price Index - Greater London

Source website Period covered Average
house price
Monthly
change (%)
Quarterly
change (%)
Annual change
(%)
Archive /Graph Peak average
house price
Change since
peak (%)
Official releases
HM Land Registry UK HPI July 21 £494,673 2.00 N/A 2.20 Tick £530,409
(Jan 16)
6.70 July 2021
Nationwide House Price Index Q1 21 £482,576 N/A 4.8 6.20 Cross Current Quarter (Q1 2021) March 21
Rightmove ‘Asking’ Price Index Sept 21 £638,285 0.40 N/A 0.80 Tick Sept 2021

House Price Predictions

If you have discovered other or revised predictions that you’d like added to this list then send an email to us with all the information for each column and also a link to a website that contains the information so that we can verify the data.

This table is now sorted by the date that the prediction was made.

Source website Analyst Photo Date prediction made Amount predicted Region Time Period Evidence Notes
www.cebr.com C.E.B.R Photo of David Orr 2020   13.8% UK 2021 Tick
”CEBR predicts that average house prices will be 13.8% lower in 2021 than in 2020.”

 

uk house price prediction

The outlook at the start of 2021 in terms of restrictions imposed by Covid-19, seems similar to that of March and April of 2020. After further easing of restrictions in 2021 we could therefore see what was experienced after the March lockdown ended in 2020 i.e. a surge in house prices. This was caused primarily by buyers scrambling for more space, both house and garden. 

Flats and maisonettes could stand to make the smallest gains in 2021 whilst larger, detached properties with bigger gardens could again stand to see the most gain.

 

The data also shows that for 10 years average house prices in the UK were above the long term trend line but to date have spent a further 10+ years below it.

 

The data shown in the graph after Q4 2020 has been ‘forecast’ by continuing long term trends and further price rises. It shows UK average property prices could reach £275,000 by the end of 2022, nearly a 15% rise.

UK House Prices to Earnings Ratio

This is calculated by dividing the house price for a region by its earnings. That ratio then serves as an indicator of relative affordability. 

 

A higher ratio indicates on average that it is less affordable for people to purchase a house in their region. On the flip side a lower ratio indicates higher affordability in that region. 

 

Whether something is ‘expensive’ can be very subjective and affordability then plays a key part. Bear in mind, ‘expensive’ to one person might not be expensive to another, so that’s why it’s important to break the earnings ratio down by geographical region. It also highlights regional purchasing power. 

 
uk house price to earnings ratio

The chart shows the average multiple of a person’s non taxed pay that’s required to purchase a property, in that particular region. For instance earning £25,000 per annum where a property costs £150,000 would give an earnings ratio of 6. The UK average is 6.2 as shown on the far right.

 

London has the highest multiple at 10.6 and the lowest region is the North of England at 4.2 closely followed by Scotland at 4.4.

 

By comparison over 20 years, from Q4 2000, this ratio has increased dramatically. This means house prices have risen faster than wages have increased, making property across the UK on average more expensive, relative to what people earn.

Have High UK House Prices Put Buyers Off?

The number of sold properties is down on previous years as shown in the chart but this could be a direct cause of the pandemic. However with interest rates being so low, [the Bank of England base rate is just 0.10%], this means that the cost of servicing a mortgage has actually been downtrending over recent years and is now about bang on the historical average.

uk property sales volume
average house prices for first time buyers

Are First Time Buyers Priced Out?

Of course for first time buyers there is the issue of saving for a deposit. This however isn’t always saved from earnings. Bank of Mum and Dad plays a huge part as 40% of people in 2018-19 received help with a deposit. 

This should actually come as no surprise, being that a 20% deposit is 104% of a first time buyers annual income. 

First time buyers have a below average ‘earnings to property prices ratio’ of 5.2 and  purchase less expensive properties than former owner occupiers. [data for England only]

In short, property has become more expensive relative to earnings over the last 20 years making it harder for people, who need to save for a deposit, to get on the property ladder. Once on the ladder though, the costs of a mortgage are at the historical average mark, meaning property ownership isn’t any more expensive than in previous years. 

This could be taken as a clear indicator that the property market is not overheated.

Home ownership rates are at a 3 year high but still down on 2003 highs of 70.3% meaning there could be room for movement.

Prices increased 7.3% last year but are still down on 2007 highs meaning further growth could be possible plus property prices still remain well below the long term trend.

Interest rates are at a historic low meaning the cost of servicing a mortgage is ‘cheap’ and mortgage approvals are up, which is a good indicator of forward-looking demand. 

 

Give us your thoughts? Can you see further house price growth this year or is a looming house price crash on the horizon?