UK Property Prices at Record Level for 5th Consecutive Month - Nova
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The average property price in England currently remains at circa £330,000 starting a new record level for the fifth successive calendar month following sharp activity during Q4 2020.

According to the latest property report from E.Surv  (formerly the LSL Acadata House Price Index), the average price of a property in England during by the end of 2020 was 7.8% up compared to the same period back in 2019 – which is a record high since 2016.

Average house prices have increased by 51% in the last decade rising from £220,000 in Q4 2010 to £330,000 in Q4 2020. Nonetheless, when factoring in the 19% progress seen in the CPIH index over the same timeframe, property prices in actual terms have grown by 32% over the past decade.

The key drivers for the current growth in property prices are the pent-up demand built up in late 2019 due to the prolonged Brexit negotiations, the historically low-interest rates which have made homes more affordable and of course the temporary stamp duty holiday which has incentivised investors/owner occupiers to secure a deal before its planned termination at the end of March 2021.

Richard Sexton, director at E.SURV, comments: “During 2020, large numbers of people across the UK were confined to their houses for long periods, as we battled the pandemic. Over the year many people were forced to adapt their homes to function as offices, schools, and nurseries. This increased emphasis on where we live and where we spend so much of our lives undoubtedly helped focus many people’s minds on the property market.

“Indeed, prices rose rapidly over much of England and Wales in 2020, with the average house price in December up 7.8% on the previous year. This is the highest annual increase since 2016, though it is worth noting that most of this growth took place in the last six months of the year as pent-up demand was released by more relaxed coronavirus restrictions.

“The market was further stimulated in July by the introduction of the Stamp Duty holiday, which is still set to last until the end of March 2021 and continues to fuel activity in the market.”

“Taking a longer view, average house prices in England and Wales have increased 51% over the last decade. Even examining house price growth in the context of this time frame, though, 2020 still stands out.

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