UK House Price Index report for December 2020

The ONS report published today highlights the following data: 

• The average UK house price was £252,000, £20,000 higher than in December 2019.

• On a non-seasonally adjusted basis, average house prices in the UK increased by 1.2% between November and December 2020 compared with a decrease of 0.1% in the same period a year ago. On a seasonally adjusted basis, average house prices in the UK increased by 1.3% between November and December 2020, following an increase of 1.2% in the previous month.

• England house prices grew by 8.5% in the year to December 2020, up from 7.0% in November 2020.

• The lowest annual growth was in London, where prices increased by 3.5% over the year to December 2020.

• London’s average house prices in December 2020 stands at £496,000.

• Kensington & Chelsea still the most expensive borough to buy a property with the average cost of £1.3 million. The most affordable London borough is Barking & Dagenham: £318,000.

The most likely explanation for the house price growth is a higher demand from house buyers incentivised by the combination of the following: changes in housing preferences since the pandemic - from flats and apartments to detached/ house properties, a higher number of mortgage approvals, and a response to the changes made to property transaction taxes i.e., the July suspension of the tax for properties up to the value of £500,000.

House price growth in Wales increased by 10.7% over the year to December 2020, up from 6.9% in November 2020. This has brought the average house price in Wales to a record high at £184,000.

The average house price in Scotland increased by 8.4% over the year to December 2020, up from an increase of 8.1% in the year to November 2020, with the average house price in Scotland now at £163,000.

The average house price in Northern Ireland increased by 5.3% over the year to Quarter 4 (Oct to Dec) 2020. Northern Ireland remains the cheapest UK country to purchase a property in, with the average house price at £148,000 (Figure 3). 

For more details see the full ONS report HERE  

Check HERE for the latest properties for sale listed by Chase Evans.