UK house prices surge by 9.5% in year hitting record high

7 June 2021, 12:45 | Updated: 7 June 2021, 12:51

House prices increased by 9.5 per cent annually in May, the Halifax House Price Index has shown, reaching a record high.

The average house price reached £261,743, which is the strongest level of inflation in nearly seven years.

In the last 12 months, the 9.5 per cent increase was equivalent to more than £22,000.

House prices increased by 1.3 per cent - £3,000 - in the last month alone.

Growth in prices was most prominent in Wales with values increasing by 11.9 per cent.

Managing Director of Halifax, Russell Galley, said: "For some homebuyers, lockdown restrictions have also resulted in an unexpected build-up of savings, which can now be deployed to fund bigger deposits for bigger properties, potentially pushing property prices even higher.

"Whilst these effects will be temporary, the current strength in house prices also points to a deeper and long-lasting change as buyer preferences shift in anticipation of new, post-pandemic lifestyles - as greater demand for larger properties with more space might warrant an increased willingness to spend a higher proportion of income on housing."

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Average house prices in areas across the UK

Halifax confirmed the average prices for houses in different regions in the country as well as their annual increase in May.

East Midlands, £213,481, 9.2 per cent

Eastern England, £302,158, 6.5 per cent

London, £509,621, 3.1 per cent

North East, £150,401, 6.9 per cent

North West, £199,441, 10.6 per cent

Northern Ireland, £160,641, 9.1 per cent

Scotland, £183,351, 7.4 per cent

South East, £351,437, 6.1 per cent

South West, £266,182, 8.6 per cent

Wales, £190,345, 11.9 per cent

West Midlands, £220,998, 9.0 per cent

Yorkshire and the Humber, £183,404, 10.2 per cent

Mr Galley said: "For Wales and the North West, these are the biggest percentage gains since April 2005, and for Yorkshire and the Humber since June 2006.

"The south of England, traditionally the driving force of national house price performance, is for once lagging somewhat behind the rest of the country."