Slower growth in house prices during July

August 16, 2021 by Alan

House Prices

The latest report published by e.surv shows that there was a slowdown in the rate of house price growth during July, but average prices continued to rise year-on-year.

The rate of annual growth in house prices for the month was 9.1% across Wales and England, which left the average price of a home in these places at £336,003. In addition to the continued annual price growth in July, there was also month-on-month growth of 0.9%, with a house in Wales or England costing £27,900 more on average compared with June.

Despite this, there were some signs of the boom in house prices slowing somewhat last month, as this month-on-month rise was less than the £32,500 rise in June compared to May. June also saw annual growth of 10.7%, suggesting that July may be the start of a reduction in housing market growth.

Peter Williams and John Tindale, who work as analysts for Acadata, told Mortgage Strategy that they are attributing this to several different factors. These include the furlough scheme starting to wind down, the scrapping of the tax on land transactions in Wales and the end of the holiday on stamp duty.

The Humber and Yorkshire was the region that saw the highest growth in prices between June and July, as they went up by 1.7% there, while the East Midlands came second with growth of 1.6% for the month.

A slowing down of house price rises could make it easier for those with CeMAP mortgage advisor training to find affordable options for clients with varying incomes.