Another high for house prices
ONS reveals that the average cost of a UK property soared by an annual 8.5% to hit £252,000 in December, writes Vicky Shaw
The average UK house price reached a record high of £252,000 in December 2020, official figures show.
Property values surged by 8.5 per cent year-on-year – marking the highest annual growth rate since October 2014, the Office for National Statistics (ONS) said.
In November, house prices had increased by 7.1 per cent.
As buyers searched for bigger properties, detached property prices rose by 10 per cent in the year to December, which is double the 5 per cent rate that the average price of flats and maisonettes put on.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The housing market continued at full speed ahead as we approached the end of the year.
“With demand from buyers for more space – both inside and out – outstripping supply, prices inevitably edged upwards.
“Detached houses continue to be the property of choice, with price growth of flats continuing to lag.”
Average house prices increased over the year in Scotland to £163,000 (8.4 per cent), England to £269,000 (8.5 per cent), in Wales to £184,000 (10.7 per cent), and in Northern Ireland to £148,000 (5.3 per cent).
Within England, the North West had the highest annual growth in average house prices (11.2 per cent), while London recorded the smallest increase (3.5 per cent).
London’s average house prices remain the most expensive of any region in the UK at £496,000 in December 2020.
The North East continued to have the lowest average house price in England, at £141,000, and has been the final English region to record prices passing their pre-economic downturn peak of July 2007.
The ONS report stated: “Recent price increases may reflect a range of factors, including pent-up demand, some possible changes in housing preferences since the pandemic, and a response to the changes made to property transaction taxes across the nations.”
The stamp duty holiday is due to end next month and there have been concerns that some buyers may pull out if they do not meet the deadline.
Stamp duty applies in England and Northern Ireland, but similar property tax holidays have been applied here and in Wales.
The property tax holidays are due to end on 31 March across the whole of the UK.
Property website Rightmove has estimated that, in the event that Westminster decides to extend the deadline by six weeks, between 120,000 and 160,000 additional property transactions in England could potentially benefit from the tax saving.