Halifax House Price Index
House Prices in June 2021
The average UK house price in June 2021 was £260,358 a fall of 0.5% from May 2021.
House prices fell by 0.5% during the last month
House price increased by 8.8% over the last year
Halifax House Price Index Chart
Halifax House Price Index Commentary
House prices dipped in June by 0.5% to £260,358 following their record high in May of £261,642 according to the latest Halifax House Price Index. However, the trend is still upwards and average house prices have increased by £21,041, or £1,753 per month over the last year.
We continue to question the need for ongoing Government support for such a buoyant housing market, other sectors are in more need of assistance in our view and welcome the fact that the Stamp Duty Holiday has started to be tapered down from 1 July 2021.
The outlook for the next six months looks strong as the economy unlocks, stamp duty remains on holiday until 30 September (albeit at lower levels than previously) and high loan to value mortgage supply increases, but there is a risk that when the extended holiday ends, the UK housing market will wake up with a hangover.
There has already been a significant increase in house hunting activity since the Budget announced the stamp duty holiday extension and high loan to value mortgage guarantee scheme. It seems that the extension has encouraged more people to start their search for a home rather than just allowing those with purchases already in progress more time to complete.
There is a real danger here that a budget policy that tried to dismantle a cliff edge will actually build a bigger one.
However, the Halifax currently believes that the current strength in house prices points to a deeper and potentially longer-lasting change in buyer preferences as people seeking bigger homes with more space may be willing to spend more of their income on housing.
Interestingly the regional house price trends support this view with house price inflation lower in urban areas and higher in those with larger homes with more outside space.
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Halifax House Price Index Publication dates
- Friday 6th August 2021
- Tuesday 7th September 2021
- Thursday 7th October 2021
- Friday 5th November 2021
- Tuesday 7th December 2021
- Friday 7th January 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.