The average UK house price reached a fresh record high in August while annual inflation cooled to a five-month low, after the partial end of the stamp duty holiday in England and Northern Ireland.
Halifax, one of the country’s biggest mortgage lenders, said the average cost of a property increased by 0.7%, or £1,789, to £262,954, topping the previous peak of £261,642 recorded in May.
The annual rate of house price inflation slowed to 7.1%, the lowest since March and down from 7.6% in July. However, compared with June 2020, when the housing market began to reopen after the first Covid-19 lockdown, prices remain more than £23,600, or 9.9%, higher.#
Last week, the Nationwide building society said its data showed house prices jumped by 2.1% in August, a rise of almost £5,000, and annual inflation picked up to 11% from 10.5%, confounding expectations that the market would slow after the threshold for paying stamp duty was lowered from £500,000 to £250,000 in July.