Average UK house price ‘increased by £1,691 per month during pandemic’
Property values hit a new record high of £272,992 on average in November, Halifax said.
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Your support makes all the difference.The average UK house price has increased by £1,691 per month since the UK first entered lockdown in March 2020, according to an index.
Property values hit a new record high of £272,992 on average in November, Halifax said.
Managing director Russell Galley said: “Since the onset of the pandemic in March 2020, and the UK first entering lockdown, house prices have risen by £33,816, which equates to £1,691 per month.”
Quarterly house price inflation was at its strongest level since 2006, with 3.4% growth.
Prices increased by 1.0% month on month in November, and by 8.2% annually.
Mr Galley continued: “The performance of the market continues to be underpinned by a shortage of available properties, a strong labour market and keen competition amongst mortgage providers keeping rates close to historic lows.
“Those taking their first step on to the property ladder are also playing an important role in driving activity, with annual house price inflation for first-time buyers at 9.1% compared to 8.8% for home-movers.
“We see this across different property types too, with double-digit annual price inflation for flats (+10.8%) over the last year compared to slower gains for detached properties (6.6%).
“This could suggest the ‘race for space’ is becoming less prominent than it was earlier in the pandemic, with industry data also showing the overall number of completed transactions has fallen back since the end of the stamp duty holiday.
There is now greater uncertainty than has been the case for quite some time
“Looking ahead, there is now greater uncertainty than has been the case for quite some time, with interest rates expected to rise to guard against further increases in inflation.
“Leaving aside the direct impact of a possible resurgence in the pandemic for now, we would not expect the current level of house price growth to be sustained next year given that house price-to-income ratios are already historically high, and household budgets are only likely to come under greater pressure in the coming months.”
Halifax said the average house price in Wales has passed £200,000 for the first time. Wales also had the strongest annual house price inflation in November, at 14.8%.
Northern Ireland also continued to record strong annual house price growth, at 10.0%.
House prices in Scotland have increased by 8.5% year on year, with the average price of £191,140 there also the most expensive on record, Halifax said.
In England, the North West remained by far the strongest performing region with an annual house price increase of 11.4% – the highest rate of growth since 2005.
London continued to lag the rest of UK in its rate of house price growth, with annual inflation of 1.1%.
Here are average house prices across the UK in November, according to Halifax, and the annual rate of price growth:
– East Midlands, £223,198, 8.2%%
– Eastern England, £317,522, 7.4%
– London, £521,129, 1.1%
– North East, £157,100, 7.5%
– North West, £209,287, 11.4%
– Northern Ireland, £169,348, 10.0%
– Scotland, £191,140, 8.5%
– South East, £370,171, 7.6%
– South West, £283,734, 10.0%
– Wales, £204,148, 14.8%
– West Midlands, £231,493, 7.9%
– Yorkshire and Humber, £190,263, 8.8%