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House prices, as measured by the UK House Price Index, increased by 10.0% between May 2020 and May 2021. On a seasonally adjusted basis, average house prices increased by 0.5% between April 2021 and May 2021.

House prices grew at different rates across the UK’s countries and regions over the year to May 2021. House prices grew by 15.2% in the North West, 13.3% in Wales and 12.1% in Scotland. Growth was slowest in London at 5.2% and East of England at 6.9%. House prices in Northern Ireland grew by 6.0%, but Northern Ireland’s data is for growth in the year to Q1 2021.

UK house price index

Bank of England data on the number of mortgages approved to finance house purchases are a leading indicator of house sales. 

Mortgage approvals for house purchases are significantly higher that the lockdown-related record low of May 2020. Mortgage approvals in May 2021 were 12% above February 2020, which was the last month to be largely unaffected by the pandemic.

Mortgage approvals fell from 86,949 in May 2021 to 81,338 in June 2021.

Mortgage approvals

Housing starts and completions fell sharply in Q2 2020 reflecting the coronavirus lockdown. They have risen since.

There were 46,010 house building starts (seasonally adjusted) in England in Q1 2021, a 7% increase compared with the previous quarter, and a 36% increase compared with the same quarter of 2020.      

There were 49,470 house building completions (seasonally adjusted) in England in Q1 2021, a 4% increase compared with the previous quarter, and a 21% increase compared with the same quarter of 2020.

Housing starts and completions


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