House prices rise 8.9 per cent annually, but fall back from March
06-16-2021
House prices rise 8.9 per cent annually, but fall back from March
by: Liz Bury
House prices rise 8.9 per cent annually, but fall back from March
Average UK property prices climbed by 8.9 per cent in April to £250,772 continuing this year’s trend for year-on-year growth, the Office for National Statistics said.
However, the month-on-month change from March was minus 1.9 per cent.
Average first-time buyer prices grew nine per cent to £210,856, but softened month-on-month with a 2.7 per cent decrease from March.
The average price for former owner-occupiers was £291,087, up 8.9 per cent year-on-year, and down 2.2 per cent monthly.
For cash buyers, average prices grew by nine per cent to £237,710 year-on-year, with the monthly change minus 2.3 per cent.
While for mortgage-funded purchases, the average price rose 8.9 per cent to £261,677 year-on-year, and fell back 1.9 per cent month-on-month.
The UK-wide headline price growth was made up of rises across the board in England, Northern Ireland, Scotland and Wales year-on-year.
Wales saw the strongest price growth, at 15.6 per cent to £185,041.
In England, prices were up by 8.9 per cent to £268,390. Scotland saw growth of 6.3 per cent to £161,401. And Northern Ireland reported Q1 growth of six per cent to £149,178.
Month-on-month growth was less robust, at minus 1.9 per cent for England, minus 4.1 per cent in Scotland, 0.6 per cent in Wales and for Northern Ireland’s Q1, it was 1.1 per cent.
By property type, the yearly increase was highest for semi-detached homes at 10.1 per cent to £241,407, followed by terraced houses at 9.5 per cent to £204,990.
The third biggest price increase was seen on detached properties, at 9.3 per cent to £385,918.
Flats and maisonettes saw a 5.9 per cent increase to £210,006.
New-build properties saw prices grow by 10.5 per cent to £312,065 year-on-year and by 0.4 per cent month-on-month.
For existing resold properties, price growth was 8.9 per cent yearly to £247,624, representing a month-on-month change of 0.2 per cent.
Karen Noye, mortgage expert at Quilter, said: “April’s house price index shows that some froth is finally coming out of the housing market with a 1.9 per cent drop in just a month since March 2021. This may be the first signal of what is to come as it is likely buyers no longer feel they can complete on a property before the June stamp duty holiday tapering begins.”
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “House prices dropped in April, which is bound to unsettle homeowners after almost a year of accelerating price rises. At this stage, we are not expecting this to be the ultimate turning point for the market, but it’s a useful wake-up call for buyers, and a reminder that house prices aren’t a one-way street.”