2021 has been a major year for the housing market.
Despite the coronavirus pandemic, business is booming in the UK property market in a blow to hopeful future homeowners.
It is a seller’s market as buyers are forking over record figures of money as the latest figures confirm the housing boom.
As of September, the average house price in Scotland has climbed to £188,525. Property values jumped by 1.7% month on month and by 7.4% on an annual basis, according to Halifax.
The average house price jumped by about £4,400, making the average UK house price its highest ever at £267,587.
The average price of a detached home has surged by £41,000 over the past year as buyers have searched for more space, the research found.
Russell Galley, managing director of Halifax, said: "The 'race for space' as people changed their preferences and lifestyle choices undoubtedly had a major impact.
“Looking at price changes over the past year, prices for flats are up just 6.1%, compared to 8.9% for semi-detached properties and 8.8% for detached.
“This translates into cash increases for detached properties of nearly £41,000 compared to just £6,640 for flats.”
A major cause of this surge in prices is due to the significant disproportion of supply and demand.
“Developers can't build quickly enough to sell into the strong market — particularly for family housing with outdoor space,” Jan Crosby, UK head of infrastructure, building and construction at KPMG.
“There are some tentative signs that sourcing building materials is becoming more straightforward, but lead times can still be very long.”
Unfortunately for buyers, the market shows no signs of slowing down.
With September's house prices showing the strongest rate of growth since February 2007, clearly there is still some way to go before the market runs out of steam,” said Mark Harris, chief executive of mortgage broker SPF Private Clients.
"While this is not great news for first-time buyers in particular, as well as second steppers struggling with affordability, mortgage rates remain low."
Average house prices across the UK and the annual increase
Data according to Halifax:
- Eastern England, £310,664, 7.2%
- East Midlands, £219,631, 8.0%
- London, £510,515, 1.0%
- North East, £155,683, 8.0%
- North West, £201,927, 9.0%
- Northern Ireland, £166,299, 9.3%
- Scotland, 188,525, 8.3%
- South East, £360,795, 7.0%
- South West, £276,226, 9.7%
- Wales, £194,286, 11.5%
- West Midlands, £225,404, 7.2%
- Yorkshire and the Humber, £186,815, 8.9%
