UK house price record high

Official figures reveal the average UK property cost is now £250,000, writes Vicky Shaw of PA

The average UK house price reached a record high of £252,000 in December 2020, official figures show.

Property values surged by 8.5% 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%.

As buyers searched for bigger properties, detached property prices rose by 10% in the year to December – double the 5% rate at which the average price of flats and maisonettes increased.

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 England to £269,000 (8.5%), in Wales to £184,000 (10.7%), in Scotland to £163,000 (8.4%) and in Northern Ireland to £148,000 (5.3%).

Within England, the North West had the highest annual growth in average house prices (11.2%), while London recorded the smallest increase (3.5%).

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 report said: “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 in Scotland and Wales.

The property tax holidays are due to end on March 31 across the whole of the UK.

Property website Rightmove has estimated that, in the event that the Government 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.