The Halifax, UK's largest mortgage lender said that house prices hit a record high in August, but the annual pace of growth in property values slowed. The lender said the cost of a typical home rose 0.7% last month to £262,954. In the year to August, house prices rose 7.1%, it said, down from a rate of 7.6% in July.
But that figure masked big differences between different regions, reflecting buyers' interests in seeking more space and rural locations. "Given the rapid gains seen over the past 12 months, August's rise was relatively modest and the annual rate of house price inflation continued to slow," said Russell Galley, managing director, Halifax. The broader economic environment was positive, with high job vacancies and consumer confidence returning, which benefited the housing market, he said.
But the stamp duty holiday, put in place at the start of the pandemic to support the housing market, runs out at the end of September, and was no longer having a significant impact on the market, Galley added. Instead, record levels of buyer activity were being driven by buyers' demand for more space as many continue to work from home.
"These trends look 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," said Galley. The pace of price rises varied across the UK, the Halifax said. In Wales, annual house price inflation was 11.6% last month, while in the south west of England it was 9.6%. Northern Ireland saw annual house price inflation of 9.3%, but in Scotland price growth slowed to 8.4%.
