< Back to blog

UK average house prices increase to record highs Posted On 20 November 2020

Average house price increases by 4.7% over the year to September

 

According to the latest UK House Price Index from the ONS and the Land Registry, average UK house prices rose by 4.7%, up from 3.0% in August to a record high of £245,000.

 

This comes before a second boost to the property market from lockdown 2.0 which has increased property demand similar to the boost the market received when restrictions were removed at the end of the first lockdown, and with the Stamp Duty Holiday still running, more people than ever are looking to move which has helped push up the average UK house price.

 

Overall, average house prices increased over the year by 4.9% in England, 3.8% in Wales, 4.3% in Scotland, and 2.4% in Northern Ireland. The South West was the English region with the highest annual house price growth, with average prices increasing by 6.4% to £275,000 in the year to September, up from 3.2% in August. While London’s average house prices hit a record high of £496,000.

 

On a non-seasonally adjusted basis, the average house price in the UK increased by 1.7% between August and September 2020, compared with an increase of just 0.1% in the same period a year ago.

 

Paul Stockwell, chief commercial officer at Gatehouse Bank, commented: “As predicted, house price growth has intensified in September fuelled by pent-up demand coupled with significant cost-savings to buyers presented by the stamp duty holiday. I expect this trend will continue in the short term as buyers feel the urgency to secure property deals and allow time for completion before the tax break ends.

 

“What began as a disastrous year for the property industry has been turned on its head by government interventions, creating a surge of demand predominantly in England and Northern Ireland where the stamp duty reduction is greatest. This in itself has presented new challenges to the industry with property portal Zoopla estimating 418,000 sales in the pipeline nationally, 50 per cent more than the typical number for this time of year.

 

“Bank of England data has already indicated that mortgage approvals in September represented the highest levels of agreed borrowing since before the Global Financial Crisis more than a decade ago. But as pressure on the property industry resources grows, it will be interesting to see if the Government concedes to requests from the industry to extend the stamp duty holiday and alleviate the expected congestion in the new year.”

 

Contact us today, to discuss a FREE valuation and the Stamp Duty Holiday…

 

< Back to blog

Connect with us

Recent Posts

New Help to Buy Scheme is up and running

Homes England has announced that first-time buyers can now apply for the new Help to Buy Equity Loan Scheme   The Help to Buy scheme has been around for a while now, however, from the 16th December last year, the new Help to Buy: Equity Loan scheme has been open for applications from first-time buyers …

Read more...

The beloved annual tradition.

Robert Burns is a national icon and beloved Scottish hero, but do you know why? Poetry is far from dead, and so is Scottish tradition, especially when it comes to this poet who forever changed nations’, ways of thinking. Once the magical Christmas dust has settled, and the New Year’s celebratory confetti has finally fallen …

Read more...

Figures show healthy start to year for property market

Online giant pinpoints reasons for upsurge hours after hopes to extend Stamp Duty deadline hit a snag   Latest figures show the property market has made a buoyant start to the new year – thanks to the Stamp Duty holiday, virtual viewings and other innovative ways estate agents are helping buyers and renters. Rightmove, the …

Read more...

Low-deposit mortgages return

  A four-fold rise in mortgage products for homeowners with a 10% deposit   Since last summer there has been a four-fold increase in low-deposit mortgage products available. The low-deposit mortgage products, which offer deposits as low as 10%, will offer some relief to first-time buyers.   Last September there were only 44 mortgage products …

Read more...

New Bedroom DIY and Decorating Ideas

Is your bedroom due an upgrade? Check out the hot, new trends for 2021   It’s the New Year, which means new beginnings. Now is the perfect time for a change of scenery within your own four walls. So if you fancy giving your bedroom a makeover, but are stuck on ideas, here are a …

Read more...