UK House Prices: The Latest News and Figures in 2021 

Amy Jackson
Amy Jackson
Property Editor
Updated 16 September, 2021
5 Min Read

UK House Prices Guide UK House Prices Guide
  • House prices are rising at record-breaking levels in 2021. 
  • Average UK house prices are now over 13% higher than they were before the pandemic. 
  • North West house prices continue to lead the way for property price growth while London house prices lag. 
  • Experts expect further average UK house price growth of 21.5% by 2025. 

Read the latest UK house price news, facts, and figures in our detailed guide to house prices in the UK. 

Here, we look at statistics for UK house prices in 2021, analyse how North West house prices are growing faster than in any other region, and assess the UK house price forecast for the coming years. 

We’ll also discuss the effect of Covid-19 and the Brexit vote on average house prices and analyse house prices over the last five years and beyond with our UK house prices graph. 

Whether you’re interested in property investment or you’re looking to buy a new home, keep reading to learn more. You can also download a free copy of our UK house prices guide if you prefer to read in a PDF guide format. 

Claim Your FREE In-Depth PDF Guide to UK House Prices Today 

UK House Prices Guide

Enter Details to Download Now

Contents

The Latest UK House Price News and Data
View More

The Latest UK House Price News and Data


Past UK House Price Trends
View More

Past UK House Price Trends


UK House Prices by Area
View More

UK House Prices by Area



UK House Price Forecast Predictions
View More

UK House Price Forecast Predictions



Latest UK House Price News Latest UK House Price News

The Latest UK House Price News 

UK house prices have been changing drastically over the past year.  

Stay up to date on the UK property market with our quick facts on UK house price growth and information on the latest housing market performance. 

The Latest UK House Price Figures From September – November 2021: What are House Prices Doing in the UK Right Now?

In September 2021, Halifax unveiled the latest statistics on the UK housing market 

Their figures revealed that the new average UK house price stood at £262,954 as of August 2021 – the highest ever on record.  

This record-breaking figure was £23,600 higher than the average UK property price back in June 2020.  

The new average house price is also 1.2% higher than it was in the previous month.  

Updated statistics from the UK house price index have revealed that UK house prices decreased by £10,000 on average between June and July. 

This recent Halifax data, however, shows that prices are on a sharp rise. Those who want to invest in property before prices increase further are urged to act fast to secure the best deals now.

In November 2021, the latest UK house price figures revealed that the current average property price in the UK (as of August) stands at £264,244, which is up 2.9% since July.

This new figure is higher than Halifax’s predicted £262,954, which shows that property prices are increasing further.

The question on everyone’s lips is ‘what will happen to UK house prices throughout the remainder of 2021?’    

UK House Prices in Summer 2021 UK House Prices in Summer 2021

UK House Prices in Summer 2021 – How Did the Market Perform? 

In the summer of 2021, house prices in the UK experienced some record-breaking highs. 

In June, reports from the UK Nationwide house price index showed a 13% rise in national house prices compared to June 2020. 

This was the biggest jump in property prices since November 2004, highlighting the strength of the 2021 housing market 

In July, UK house prices were again higher than in the previous year, with a 7.9% rise.  

Buy the UK’s Most Affordable Investment Properties With RWinvest – Invest From Just £50k 

View Properties
What Happened to UK House Prices in Spring 2021 What Happened to UK House Prices in Spring 2021

What Happened to UK House Prices in Spring 2021 

In the Spring of 2021, it was revealed that average UK house prices in March had risen to their highest level since before the financial crash in 2007, with an annual increase of 10.2% (now 9.2% according to updated house price index figures).  

By April 2021, the average UK property price was 9.2% higher than in the previous year, and by May, prices were 0.9% higher month-on-month. 

Throughout Spring, urgency clouded the property market due to the upcoming end to the full stamp duty holiday tax break at the end of June 

This led many buyers to rush to purchase second properties while they could still take advantage of tax savings.  

House Prices in the UK in Winter 2020-21 House Prices in the UK in Winter 2020-21

House Prices in the UK in Winter 2020/21  

In Winter 2020/21, housing market statistics from the UK house price index revealed a 0.8% rise in average property prices between November 2020 and December 2020. 

By January 2021, prices had grown by 0.9% month-on-month, with a 7.3% annual increase compared to January 2020.  

Pre-pandemic average house prices in the UK stood at around £231,940, and by January 2021, they stood at £249,009. 

By February, prices had increased by 8.6%.  

Compared to last year, it became evident that the accelerated growth seen in 2020 was not slowing down any time soon, and the UK housing market was in for a record-breaking year.  

Liverpool L1 City Centre Postcode

The Mill

Invest From £39,950

Liverpool Prices from £139,950

Assured 6% NET Rental Return

Grade 2 Listed Building

Exclusive Payment Structure

One Park Lane

Exclusive Liverpool Investment

Liverpool Prices from £129,950

6% Assured Net Rental Return

16 Storey Skyscraper

Invest With £29,990

Heaps Mill

Exclusive RWinvest Opportunity

Liverpool Prices from £124,950

7% Assured Net Rental Return

Deposits From as Little as 15%

Past UK House Price Trends Past UK House Price Trends

Past UK House Price Trends 

UK house price growth may have been prevalent throughout 2021, but what about past UK house price trends?  

Let’s look at how the UK property market has performed and how average house prices have changed over the last several years.  

How Much Have UK House Prices Increased Since the Beginning of the Pandemic in March 2020?

In March 2020, house prices in the UK were performing at a typical level. In March 2020, the average property price stood at £232,684.  

In the month following the announcement of a worldwide pandemic and the first UK lockdownproperty prices experienced a -1% drop, with a new average house price of £230,318. 

Many were fearful that this price drop meant that the housing market was set to crash over the coming months 

This was an anxious time for many who were left questioning – is now a good time to invest? 

However, for property investors who trusted that the market would pick back up again, this period presented a great opportunity to invest in UK property while prices were more affordable.  

And pick back up again the market did. By June 2020, property prices were already 0.8% higher than they were in March.  

Then, following the announcement of a stamp duty holiday which allowed homebuyers and investors to save on taxes for their property purchase, property prices rose to record levels. 

By September 2021, the average house price hit £241,684.  

This revealed a 3.4% annual house price growth and showed that the property market in the UK was resilient despite the pandemic.  

As a whole, from March 2020 to September 2021, house prices have increased by 13%.  

House Prices Over the Past 5 Years House Prices Over the Past 5 Years

How Much Have UK House Prices Changed Over the Last 5-10 Years? 

In the UK, house prices over the last five years and 10 years have seen significant growth. 

When analysing data from the Land Registry UK House Price Index, it’s clear that the average UK house price has seen massive growth over the last 10 years. 

In January 2011, property prices in the UK stood at £167,300 on average, compared to average property prices in the UK of £249,009 by January 2021. 

This means that over 10 years, UK house prices have increased by 48.84% on average, which is a considerable rate of growth. 

When you look at house prices over the last five years using the same data, UK house price growth experienced an increase of 21.19% between January 2016 and January 2021. 

Maximise Your Investment Potential 

Discover the Best Places to Invest in UK Property in 2022 

Read for Free
How Did the Brexit Vote in 2016 Affect House Prices How Did the Brexit Vote in 2016 Affect House Prices

How Did the Brexit Vote in 2016 Affect UK House Prices

Over the last five years, Brexit has had one of the biggest influences on the UK property market and UK house prices. 

In the lead-up to the 2016 EU referendum, many people, particularly investors, feared Brexit’s effect on property prices in the UK. 

While property prices did fall due to this uncertainty, the market wasn’t affected as dramatically as many expected. 

According to HalifaxUK house prices fell by 1% in July 2016 – a month after the EU referendum vote. 

By October of that same year, however, property prices in the UK had increased by £2,623. 

Between October 2016 to October 2017, there was a reported UK house price growth of 4.5%. 

Now, the UK has officially left the EU, and house prices have remained relatively consistent. 

House price growth throughout 2021 has been on the rise, and UK house price forecast predictions suggest nothing but further growth over the upcoming years.  

UK House Prices by Area UK House Prices by Area

UK House Prices by Area 

Record highs have been seen in the UK lately, but how does the overall UK average compare to house price growth within different regions, cities, and towns? 

In this section, we’ll take a look at: 

  • Average house prices in the UK by postcode. 
  • Analyse North West house prices and discover why the region is one of the best in the country for its property market. 
  • Discuss where you can find the lowest and most expensive house prices in the UK. 

Where Are UK Property Prices Rising Fastest? 

Property market data reveals that the North West region is the fastest-growing in 2021 when it comes to house prices. 

Looking at house prices across the different UK regions between June 2020 and June 2021, let’s compare the average house price growth in the North West to other areas.  

Data from the UK house price index shows that between June 2020 and June 2021, average house prices in the North West increased by 18.8%. 

As the graph shows, North West house prices grew faster than any other region between the same period.  

Of all the UK areas, London’s annual growth was the least impressive with a rise of just 5.1%.  

Wales followed closely behind North West house prices with an average property price growth of 17%, next to Yorkshire and the Humber and the North East, which boasted growth of over 15%.  

Where Are UK Property Prices Rising the Fastest Where Are UK Property Prices Rising the Fastest

 

Secure The All-New Embankment Exchange Riverside Apartments From £50k – Hurry While Stocks Last 

View Property Details

Average UK House Prices by Country

How do average house prices vary between the different countries in the United Kingdom?  

Here are average house prices for EnglandWalesScotland, and Northern Ireland as recorded in the latest UK house price index update for July 2021.  

According to UK house price index data, the average house price in England as of July 2021 was £270,973.  

This is the highest of any country in the UK by a strong distance. England’s average property price is the only one to exceed £200,000.  

This is mainly down to London and the South of England’s high property prices. In London, an average house price of £494,673 was recorded in July.  

If you’re looking for the best place to invest in the UK and you want to buy property in a thriving UK area without spending above the odds, Liverpool is a great city to focus on.  

Here, the average price as of July stands at £162,259, according to Land Registry data.  

In Wales, average property prices are more affordable than those in England despite sharp house price growth over the past year. 

The UK House Price Index records Wales’ average house price as £187,960 as of July 2021.  

This means that in Wales, buying a property as a first-time buyer is more achievable as there’s a broader choice of affordable houses and flats to purchase. 

In the Welsh capital of Cardiff, properties are more pricey, with a £240,320 average.  

Those seeking properties below £200k in Wales may want to look at areas like Swansea, which boasts a modest £170,774 average price. 

The Scottish property market is performing above the housing market in many UK regions, with annual growth of 11.7%.  

The average property price in Scotland, according to recent data, was £177,166 in July.  

This makes the Scottish average house price higher than Wales but lower than the average in England 

Predictably, the Scottish capital of Edinburgh’s average house price as of July was higher than the country’s average, standing at £309,227. 

This puts Edinburgh’s housing market almost on par with London in terms of affordability.  

In Northern Ireland, an average house price of £153,449 was recorded for July this year.  

This is the lowest in the UK compared to EnglandScotland, and Wales and puts Northern Ireland on the map as a good area for affordability when buying property. 

Even in Belfast, where prices would expect to be higher overall, property prices average out at £145,337.  

However, annual growth for Northern Ireland in the year to June 2021 was 8.9%, which is lower than that of the other three contenders.  

Average House Prices in England

According to UK house price index data, the average house price in England as of July 2021 was £270,973.  

This is the highest of any country in the UK by a strong distance. England’s average property price is the only one to exceed £200,000.  

This is mainly down to London and the South of England’s high property prices. In London, an average house price of £494,673 was recorded in July.  

If you’re looking for the best place to invest in the UK and you want to buy property in a thriving UK area without spending above the odds, Liverpool is a great city to focus on.  

Here, the average price as of July stands at £162,259, according to Land Registry data.  

Average House Prices in Wales

In Wales, average property prices are more affordable than those in England despite sharp house price growth over the past year. 

The UK House Price Index records Wales’ average house price as £187,960 as of July 2021.  

This means that in Wales, buying a property as a first-time buyer is more achievable as there’s a broader choice of affordable houses and flats to purchase. 

In the Welsh capital of Cardiff, properties are more pricey, with a £240,320 average.  

Those seeking properties below £200k in Wales may want to look at areas like Swansea, which boasts a modest £170,774 average price. 

Average House Prices in Scotland

The Scottish property market is performing above the housing market in many UK regions, with annual growth of 11.7%.  

The average property price in Scotland, according to recent data, was £177,166 in July.  

This makes the Scottish average house price higher than Wales but lower than the average in England 

Predictably, the Scottish capital of Edinburgh’s average house price as of July was higher than the country’s average, standing at £309,227. 

This puts Edinburgh’s housing market almost on par with London in terms of affordability.  

Average House Prices in Northern Ireland

In Northern Ireland, an average house price of £153,449 was recorded for July this year.  

This is the lowest in the UK compared to EnglandScotland, and Wales and puts Northern Ireland on the map as a good area for affordability when buying property. 

Even in Belfast, where prices would expect to be higher overall, property prices average out at £145,337.  

However, annual growth for Northern Ireland in the year to June 2021 was 8.9%, which is lower than that of the other three contenders.  

Liverpool L1 City Centre Postcode

The Mill

Invest From £39,950

Liverpool Prices from £139,950

Assured 6% NET Rental Return

Grade 2 Listed Building

Exclusive Payment Structure

One Park Lane

Exclusive Liverpool Investment

Liverpool Prices from £129,950

6% Assured Net Rental Return

16 Storey Skyscraper

Invest With £29,990

Heaps Mill

Exclusive RWinvest Opportunity

Liverpool Prices from £124,950

7% Assured Net Rental Return

Deposits From as Little as 15%

ELEMENT - The Quarter ELEMENT - The Quarter
View Property

Where Are the Cheapest House Prices in the UK?  

To learn where to find the cheapest house prices in the UK, let’s analyse some house prices in the UK by postcode. 

According to Property Data, the cheapest house price can be found in the TS1 postcode in Middlesbrough. Here, the average property price in 2021 is just £54,978. 

Next to this, Bradford’s BD1 postcode offers average prices of £58,673, while the SR1 postcode in Sunderland has prices of £65,478. 

Liverpool, one of the best places to invest in property in the UK due to low property prices and high rental yields, offers average prices of only £91,793 in the L20 postcode and £97,744 in the L5 area. 

Which Area Has the Most Expensive House Prices Which Area Has the Most Expensive House Prices

Which Area Has the Most Expensive House Prices in the UK? 

In recent research from Halifax, the most expensive city to buy a home in 2021 was revealed as Winchester in the South East. 

Here, average property prices were higher than most people could afford based on national average earnings.  

According to Halifax in an August report, the average house price stood at £630,432, while average earnings are £45,059. 

As expected, London property also made the top 10 list.  

The most pricey postcodes to buy property in the capital include SW7, which spans the Knightsbridge and Kensington areas, and SW10, which is home to West Brompton. 

In these London postcodes, buyers will struggle to find a one-bedroom flat for less than £1 million.  

Current asking prices for SW7, according to Zoopla, stand at a whopping £1,312,899 for this property type.  

Why Have North West House Prices Outperformed Those in London in the Last 5 Years?

The significance of North West house prices towards UK property market growth as a whole may have left many wondering why house prices in the North West present more substantial growth than in other regions. 

The North West region is home to two major UK cities, Liverpool and Manchester. As our figures have shown, Liverpool and Manchester property prices have been growing fast over the past year.  

Both these cities are known for their vibrant culture, famous student scenes, and thriving economy. 

Several factors have contributed to the North West housing market’s strength in the UK, all of which are essential for investors to know about when comparing regional house prices. 

Here are some things that help the North West stand out as a top region for property and have caused North West house prices to dominate the market. 

Projects such as MediaCityUK in Manchester and LiverpoolONE in Liverpool have injected billions worth of investment and redevelopment into the North West and attracted plenty of worldwide interest. 

With plenty of schemes planned for the future, including the eagerly awaited Liverpool Waters project, it’s clear that the North West is gaining some much-deserved attention. 

As a result of regeneration improving the appeal of these cities, house prices have surged due to increased property market interest. 

Whether you’re buying a property or a new pair of jeans, wouldn’t you want to spend less money without having to sacrifice quality? 

North West house prices are dramatically lower than those in London. Many investors, homeowners and first-time buyers recognise that they can get a lot more for their money up North. 

The average property price of the North West in July stood at £185,171. Compare this to London’s £494,673 average, and it’s a no brainer as to why market demand in the North West region has skyrocketed.  

Higher numbers of people are choosing to move to the North West, leading to an increase in demand and undoubtedly contributing to the price changes in this UK region. 

In June 2017, 330,000 people left the confines of the capital, and in 2018, record numbers of Londoners had been selling their existing properties to move up North. 

Thanks to the rise of remote working and the desire for more space, more and more people in 2020 have been leaving busy city life behind and moving away from the capital.  

Alongside offering property buyers more for their money, the North West city of Liverpool has a reputation as a great place to live.  

Not only is this city known for its affordable property prices and thriving housing market, but in a recent study, Liverpool was ranked as one of the best cities in the world for mental wellbeing – the only UK city to make the top 20! 

Regeneration in the North West Is Strong

Projects such as MediaCityUK in Manchester and LiverpoolONE in Liverpool have injected billions worth of investment and redevelopment into the North West and attracted plenty of worldwide interest. 

With plenty of schemes planned for the future, including the eagerly awaited Liverpool Waters project, it’s clear that the North West is gaining some much-deserved attention. 

As a result of regeneration improving the appeal of these cities, house prices have surged due to increased property market interest. 

Property Is More Affordable

Whether you’re buying a property or a new pair of jeans, wouldn’t you want to spend less money without having to sacrifice quality? 

North West house prices are dramatically lower than those in London. Many investors, homeowners and first-time buyers recognise that they can get a lot more for their money up North. 

The average property price of the North West in July stood at £185,171. Compare this to London’s £494,673 average, and it’s a no brainer as to why market demand in the North West region has skyrocketed.  

A Great Place to Live

Higher numbers of people are choosing to move to the North West, leading to an increase in demand and undoubtedly contributing to the price changes in this UK region. 

In June 2017, 330,000 people left the confines of the capital, and in 2018, record numbers of Londoners had been selling their existing properties to move up North. 

Thanks to the rise of remote working and the desire for more space, more and more people in 2020 have been leaving busy city life behind and moving away from the capital.  

Alongside offering property buyers more for their money, the North West city of Liverpool has a reputation as a great place to live.  

Not only is this city known for its affordable property prices and thriving housing market, but in a recent study, Liverpool was ranked as one of the best cities in the world for mental wellbeing – the only UK city to make the top 20! 

Save £££ on Your Investment Property 

Find Out How Off-Plan Property Can Maximise Your Property Portfolio in 2021/22 

Learn More
UK House Price Forecast UK House Price Forecast

UK House Price Forecast Predictions – What Will Happen to House Prices UK? 

So, will house prices rise over the coming years, or should we expect some record lows after a year of enormous growth? 

Thankfully for many, house prices in the UK are set to rise over the coming years, despite cautious attitudes towards the property market following the end of the stamp duty holiday. 

According to the latest Savills predictions, the UK will see average property price growth of 21.5% by 2025. 

While this is an attractive figure, house price increases by area suggest that certain regions will outperform the national average when it comes to regional house prices. 

The North West, in particular, has seen some of the strongest property price growth when analysing UK house price trends. 

The latest property price news for the UK and North West housing news suggests this growth is set to continue. 

By 2025, Savills predicts that the North West region will see house price growth of 28%. 

Yorkshire and the Humber also expect house price growth of 28%, while the next best growth prediction is for Wales with a 26.8% expected increase.  

The lowest-performing region is London, with a 12.4% predicted capital growth rate. 

With the UK house price forecast in mind, looking for opportunities up North is essential to maximise capital growth potential over the coming years. 

When Will House Prices Drop in the UK When Will House Prices Drop in the UK

When Will House Prices Drop in the UK? 

For those feeling cautious about the market’s future, the question still remains – will house prices drop in 2021 UK? When are we expected to see a more affordable version of the current house prices in the UK? 

Savills predictions state that in 2021, UK property prices should rise by an average of 9%.  

As of September 2021, it seems that UK house prices are on track to meet this growth level.  

With average house prices of £249,009 in January according to the UK House Price Index and an average property price of £262,954 as of August according to Halifax data, it appears UK property prices have grown by 5.6% in the last eight months alone.  

While house prices in the UK may have dropped between June and July due to the end of the stamp duty tax break, the new average price of £262,954 (up from July’s £255,535) shows that this drop was only temporary. 

If you’re considering buying UK property before prices rise even further, the time to do so is now.  

Discover Why Student Property is the No.1 Choice in 2022 

Read More
How Will Brexit Affect House Prices in the UK How Will Brexit Affect House Prices in the UK

How Will Brexit Affect House Prices in the UK?

Judging by how the market recovered following the 2016 EU Referendum vote, experts are confident that the UK property market will remain resilient as Brexit unfolds. 

UK house prices have seen steady growth throughout the last five years, with an 11% property price rise since the beginning of 2016.  

For a more thorough investigation into Brexit’s effect on house prices in the UK, read our guide to property prices after Brexit 

Embankment Exchange Embankment Exchange
View Property

How Important Are Capital Growth Predictions for UK Investors? 

Understanding and researching UK house prices and property market predictions as a buy to let property investor is integral to any investment journey. 

This is because you get no indication of possible capital growth returns without knowing about the past, current, and future state of the area you’re looking to invest in. 

Capital growth is one of the most lucrative elements of a buy to let investment. 

If your property grows in value over time, you will have built up two types of returns – rental returns and capital gain. 

By the time you come to sell your property, its value could have increased in line with local property market trends. 

This means you will benefit from a large lump sum of money on top of the money you’ve earned through rental income. 

By identifying the best house price increases by area, you can narrow down the locations with the best investment opportunities before making your purchase. 

You can then avoid any cities or regions with slow expected growth. 

Liverpool L1 City Centre Postcode

The Mill

Invest From £39,950

Liverpool Prices from £139,950

Assured 6% NET Rental Return

Grade 2 Listed Building

Exclusive Payment Structure

One Park Lane

Exclusive Liverpool Investment

Liverpool Prices from £129,950

6% Assured Net Rental Return

16 Storey Skyscraper

Invest With £29,990

Heaps Mill

Exclusive RWinvest Opportunity

Liverpool Prices from £124,950

7% Assured Net Rental Return

Deposits From as Little as 15%

RWinvest Award Winning Property Investment Company RWinvest Award Winning Property Investment Company

Enquire With RWinvest Today 

If you’re a UK investor and you’ve enjoyed reading our guide to UK house prices, why not contact us today to chat with a member of our team? 

We can make you aware of our current property investment deals, with below-market value rates on properties in top UK cities like Liverpool, Manchester, and more. 

Get in touch today to find out more. 

If you want more information about UK house prices, check out our UK property market report 

Where We Get Our Data  

The data used in this guide was taken from the following sources: 

  • Halifax House Price Index. 
  • Land Registry House Price Index. 
  • Zoopla. 
  • Property Data.  

This content was last updated in November 2021. We aim to update this guide as often as possible, but some statistics may be outdated depending on when you read.  

Amy Jackson
Amy Jackson
Property Editor

Amy Jackson is the property editor at RWinvest. Amy has over three years of experience working in the property content sector and has a keen eye for finding the latest news, statistics, and must-have property investment information.