Region sees highest rise in house prices across the UK

HOUSE PRICES grew faster in Yorkshire and the Humber than anywhere else in the country over the year to January, according to official statistics.

In the region, property values grew by around £5,000, from an average of £160,341 in January 2019 to £165,383 in January 2020.

The 3.1 per cent rise is more than twice the national rate of 1.3 per cent, with homes in the

UK costing around £231,000 on average in January, figures released by the Office for National Statistics (ONS) and Land Registry show.

However the figures do not reflect the impact of coronavirus on the housing market.

Estate agents had been reporting property viewings numbers tumbling in recent weeks, even before the latest shutdown measures which are now keeping a large proportion of the population at home.

Jon Myers, director of Quick and Clarke based in the East Yorkshire town of Beverley, recently named by the Sunday Times as one of the best places to live in the UK, said prices had gone up because demand was up, and supply down.

He said: “Beverley was booming – until last Tuesday. Buyers feel the need to pay a premium over and above the market value to secure their purchase.

“We are still working on offers now but it has dried off enormously. Every aspect of the property market has been shut down. I think it will be a blip once we are out of lockdown.”

The official report said, on average, house prices increased annually in England to £247,000 (a 1.1 per cent increase), in Wales to £162,000 (2.0 per cent), in Scotland to £152,000 (1.6 per cent) and in Northern Ireland to £140,000 (2.5 per cent).

At the other end of the spectrum, house prices fell by 0.6 per cent annually in the East of England and by 0.5 per cent in the South-East.

House prices in London increased by 1.4 per cent annually in January, slowing down from 1.8 per cent growth in December 2019.

London house prices remain the most expensive at an average of £477,000.

Howard Archer, chief economic adviser at EY ITEM Club, said: “Most data and surveys show that the housing market ended

2019 and started 2020 on the front foot as it benefited from reduced uncertainties following December’s (General) Election.”

He continued: “Sharply lower housing market activity over the coming months will likely weigh down on prices – and a falling back from early-2020 highs seems highly probable.

“It needs to be borne in mind that the ONS’s measure of house price inflation lags many of the other measures as it is based on mortgage completions.”

The report also said that statisticians are working to continue publishing the UK house price index during the Covid-19 outbreak.

It said: “As this situation evolves, we are developing several solutions to meet potential scenarios depending on the amount of data that is able to be collected by our data suppliers to ensure we are still able to produce the publication over the coming months.”

This could include considering incorporating fewer transactions into the index, or putting together some estimates using information from the previous month, the report said.

Meanwhile, housing transactions are set to drop by an “unprecedented” 60 per cent over the next three months, research suggests, because people are unable to view properties or have them valued due to coronavirus measures. Buyer demand was down 40 per cent last week compared with the previous week, according to property listings site Zoopla, as would-be home buyers paused on major decisions and took stock of the unfolding events in the UK and around the world.

Some estate agents have begun to carry out virtual viewings to help sales of the houses that are currently on the market.

Zoopla said it presents a major new challenge for the housing market and it may put a brake on demand.

But Zoopla said low interest rates would help and more Government support may be forthcoming.