UK House Price Index figures for June 2021
Three key figures for June 2021:
The average price of a property in Scotland
The annual price change of a property in Scotland
The monthly price change of a property in Scotland
Estimates for the most recent months are provisional and are likely to be updated as more data is included. The house price index for June 2021 reflects transactions that took place up to the end of June. Some caution is needed when interpreting the latest annual price increases given the low numbers of transactions in June 2020.
Comparing with the previous month, house prices in Scotland increased by 2.4 per cent between May 2021 and June 2021.
The UK average house price was £265,688 which was an increase of 13.2 per cent on June 2020 and an increase of 4.5 per cent on the previous month.
The volume of residential sales in Scotland in April 2021 was 7,007, an increase of 199.4 per cent on the original provisional estimate for April 2020. This compares with increases of 111.8 per cent in England, 85.2 per cent in Wales, and 41.8 per cent in Northern Ireland (Quarter 1 – 2021 compared with the same quarter in the previous year).
The volume of sales in April 2020 (both original provisional estimates and the final revised volume figures) is the lowest number of residential sales transactions recorded in this time series, this us due to the introduction of measures to reduce the spread of the coronavirus (COVID-19) from mid-March 2020 onwards, in which non-essential construction activity stopped, and home buyers were advised to delay moving to a new home where possible, until the lockdown restrictions began to ease towards the end of June 2020. Commenting on the house price figures in Scotland, Accountable Officer Janet Egdell said:
“Prices continue their trend upwards in June, and the number of transactions has reverted to a more normal pattern in the first couple of months of this financial year. Over the year as a whole from May 2020 to end of April 2021, volumes have picked up and cumulatively are now 4 per cent higher than the previous year.”
In Scotland, Detached properties showed the largest increase in average house price, rising by 14.2 per cent in the year to June 2021 to £307,453, although this figure may have been affected by the low numbers of transactions recorded in June 2020. Flatted properties showed the smallest increase, rising by 9.0 per cent in the year to June 2021 to £120,893.
Average price increases were recorded in 31 out of 32 local authorities, when comparing prices with the previous year. The largest increase was in East Renfrewshire where the average price increased by 22.0 per cent to £254,771. The smallest increase was recorded in Angus, where the average price increased by 1.8 per cent to £150,819.
The only decrease was recorded in Na h-Eileanan Siar, where the average price decreased by 5.5 per cent to £123,572. Please note there can be more volatility in prices in the smaller local authorities, where the changes are based on quite a small number of transactions, therefore we exclude them from the main highlights.
In June 2021, the highest-priced area to purchase a property was City of Edinburgh, where the average price was £302,936. In contrast, the lowest-priced area to purchase a property was East Ayrshire, where the average price was £103,630.
Further information on HPI Scotland by local authority, property type, first time buyers and cash sales can be found in the latest HPI Scotland publication.
As with other indicators in the housing market, which typically fluctuate from month-to-month, it is important not to put too much weight on one month’s set of house price data. This has been particularly important over recent months, as COVID-19 has affected the volume of transactions within the market, making trends between months more volatile than usual and will continue to be important over the coming months as the ongoing impact of COVID-19 on the housing market and the economy becomes clear.