Halifax House Price Index
House Prices in September 2021
The average UK house price in September 2021 was £262,954 a rise of 1.7% from August 2021.
House prices rose by 1.7% during the last month
House price increased by 7.4% over the last year
Halifax House Price Index Chart
Halifax House Price Index Commentary
UK house prices have reached an all time high as the Stamp Duty Holiday drew to a close in September. We believe that the stamp duty holiday was a significant catalyst for house price growth, even though it has made home buyers much worse off. Average house prices rose by almost £25,000 during the stamp duty holiday, but the average stamp duty saving was just £3,379.
The race for space appears to be the driving force with house prices rising faster for detached and semi-detached properties than for flats. It will be interesting to see if these lockdown lifestyle trends continue as we leave lockdown behind.
Estate agents continue to report a shortage of homes to sell, which will help underpin prices in the coming months and housebuilders are selling homes as quickly as they can build them.
How much is my house worth?
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Halifax House Price Index Publication dates
- Friday 5th November 2021
- Tuesday 7th December 2021
- Friday 7th January 2022
- Monday 7th February 2022
- Monday 7th March 2022
- Thursday 7th April 2022
Halifax House Price Index methodology
Lloyds Banking Group is the sole source of data for the Halifax House Price Index. The index is based on mortgage approval data provided by Lloyds Banking Group.
In order to provide a robust measure for UK house prices the Halifax House Price Index removes or excludes several types of mortgage transaction from the index:
- Business use, capital raising, or building mortgages
- Discounted mortgages relative to market value where the property valuation is deemed to be less than 75% of the purchase price for instance in the case of many Right to Buy house purchases.
However, to better reflect the structure of the UK housing market, since 2019 the Halifax House Price Index has included shared ownership mortgages
The Halifax House Price Index is calculated by estimating the price of a fixed 'basket' of houses sold, not unlike the way the retail and consumer price indices are calculated by the Office of National Statistics (ONS).
The Halifax House Price Index uses a number of different property characteristics to determine the standardised house referred to in its house price index and average house prices. The idex takes into account the following property characteristics:
Property type: Lloyds Banking Group attributes a property type to each mortgage approval and mortgage offer: Detached, semi-detached, terraced, flat, bungalow
Property size: The Lloyds Banking Group mortgage data includes the size of each property in square metres. Typically the bigger the property the higher its price
Number of bedrooms: The number of bedrooms a residential property has impacts the price of the home as well as its overall size.
Age of home: The Halifax House Price index finds that in the main, new homes tend to attract a price premium over older homes with similar attributes. This could be due to a number of factors including improving building regulations and standards, warranties and energy efficiency. New homes are also likely to need fewer repairs and have lower maintenance costs than newer homes and this gets reflected in the relative prices of the homes.
Location: It is often said that house prices are all about 'Location, location, location' and this belief turns out to be true. The Halifax House Price index looks not only at the main nine regions within England (North East, North West, Yorkshire & Humberside, East Midlands, West Midlands, East England, South East, South West and Greater London), Scotland, Wales and Northern Ireland, but also at the house price differences between postcode districts to improve the accuracy of its house price index.
The Halifax Building Society launched its House Price Index in January 1983, which makes it the longest-running monthly house price index in the UK.