The UK House Price Index for November 2020, published on 20 January has shown that average house prices in the UK have reached an all-time high of £249,633, and increase of 7.6 per cent, as the housing market defied the wider economic gloom.
According to a GOV.UK press release, in England, the average property is now worth £266,742, and in London, it is almost double that at £513,997. In the North West of England, it is a more modest £180,280, but still an increase of 8.5 per cent.
However, analysts have said the property bubble may deflate, if not pop, in 2022 if the chancellor ends the stamp duty holiday on 31 March. It has been reported that Rishi Sunak is considering extending the deadline in his March Budget.
The figures from the UK House Price Index have again highlighted the disparity between regional housing markets. Property prices in northeast England rose to £140,000, marking the first time that average values have surpassed a peak reached in 2007 before the financial crisis.
The joint highest growth was seen in London and Yorkshire and the Humber regions, where house prices increased by 9.7 per cent.
England saw an average 7.6 per cent annual increase, Wales 7 per cent (£180,229), Scotland 8.6 per cent (£166,000), and Northern Ireland 2.4 per cent (£143,000)
The recent price increases may indicate a range of factors which include rent up demand and a change in housing preferences due to the pandemic and the resulting lockdowns, and a response to the changes made to property transaction taxes across the nations, according to the Office for National Statistics (ONS).
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