December House Price Index highlights:
- The Year ends on a high, up 7.8%
- Prices have increased by 51% over the last ten years
- The South West sees the highest increase in prices over the last year
- Stamp duty holiday continues to support the market
Richard Sexton, director at e.surv, comments:
“During 2020, large numbers of people across the UK were confined to their houses for long periods of time, 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.
“This increased focus was reflected in the types of property that were most sought after in 2020. Larger, typically more expensive, properties with more outdoor space became even more highly prized, which in turn increased the price of the average transaction.
“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.
“It’s important to remember that the pandemic which produced such an unusual year is very much still with us. Everyone involved in the property market must continue to operate in a responsible manner, making use of technology where possible to support the industry while putting safety first.”
Average house prices in England and Wales (Dec 2018 – Dec 2020)
About the e.surv House Price Index
The monthly e.surv House Price Index reports on transaction numbers and the changes in average house prices across England and Wales. The Index uses the actual price at which every property in England and Wales was transacted, including prices for properties bought with cash, based upon factual Land Registry data as opposed to mortgage-based prices, asking prices or prices based upon samples.
Note: The e.surv House Price Index was formerly the LSL Acadata House Price Index. Content and methodology are unchanged. Please refer to the Notes at the end of the report for more information.