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House prices, as measured by the UK House Price Index, increased by 10.6% between August 2020 and August 2021. On a seasonally adjusted basis, average house prices increased by 2.8% between July and August 2021.

House prices grew at different rates across the UK’s countries and regions over the year to August 2021. House prices grew by 16.9% in Scotland, 13.3% in the North East and 12.5% in Wales. Growth was slowest in London at 7.5%, the South East at 8.7% and Yorkshire and the Humber at 8.8%.

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 than the lockdown-related record low of May 2020. Mortgage approvals in August 2021 were 2% above February 2020, which was the last month to be largely unaffected by the pandemic.

Mortgage approvals fell from 75,126 in July 2021 to 74,453 in August 2021.

Mortgage approvals

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

There were 42,900 house building starts (seasonally adjusted) in England in Q2 2021, a 5% decrease compared with the previous quarter. There were more than twice as many house building starts in Q2 2021, compared with the lockdown low of Q2 2020.

There were 43,660 house building completions (seasonally adjusted) in England in Q2 2021, a 10% decrease compared with the previous quarter. There were more than twice as many house building completions in Q2 2021, compared with the lockdown low of Q2 2020.

Housing starts and completions


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