House prices soar to record high of £250k

THE average UK house price reached a record high of £250,000 in November – with London properties breaking through the £500,000 barrier.

Across the nation, values increased by 7.6 per cent over 12 months, meaning it was the highest annual growth rate since June 2016.

The Office for National Statistics (ONS) said the average house price in London was now £514,000.

London along with Yorkshire and the Humber had the joint highest annual growth in England, with prices increasing by 9.7 per cent.Two London boroughs recorded a growth of more than 20 per cent: Kensington and Chelsea (28.6%) and Brent (23.9%).

The sharp increase in Brent is partly caused by prices having fallen in the borough a year earlier, the report said.

While in inner London demand may be “particularly responsive” to the temporary stamp duty holiday – which ends on March 31 – as property prices are high and therefore so is the tax.

The lowest average price was £140,000 in the North-east – just £600 higher than the £139,400 peak in July 2007.

Overall, average prices in England increased between November 2019 and November 2020 to £267,000 (a 7.6 per cent annual increase). In Wales it was £180,000 and 7 per cent, in Scotland £166,000 and 8.6 per cent and in Northern Ireland £143,000 and 2.4 per cent. Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Come December’s data, the average property price will have likely broken through the £250,000 barrier.”

But Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the eventual withdrawal of the furlough scheme, stamp duty holiday and mortgage payment holidays “likely would leave house prices about two per cent lower by the end of the year”.

‘Withdrawal of schemes likely to lower amount’