Topic updates
13% rise in average UK property prices as demand-side factors dominate
23rd August 2021
Are soaring property prices - over time - good news for the UK economy?
Everyone has been saying the stamp duty holiday caused the pandemic-defying house price boom of the past year - but is that really true? The latest RF report shows prices have risen fastest in the places where the tax break has had least impact: https://t.co/9vxrgOYpnp pic.twitter.com/cXO6c7JSBp
— Resolution Foundation (@resfoundation) August 22, 2021
The arguments for and against double-digit annual growth in property valuations will continue to rage and this issue can make for an interesting early micro/macro classroom discussion to promote skills of analysis and evaluation.
UK average house prices reached a record high of £266,000 in June 2021, which is £31,000 higher than at the same time in 2020.
Average house prices increased over the year in England to £284,000), in Wales to £195,000, in Scotland to £174,000 and in Northern Ireland to £153,000.
Has the Stamp Duty holiday merely added fuel to the fire given the other demand-side factors driving property prices ever higher? This BBC news report looks at some fresh research from the Resolution Foundation.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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