The most recent data from the Office for National Statistics (ONS) has revealed that property prices in the UK exhibited strong growth in 2020.
Property Reporter shared the figures released recently, which showed that average house prices in England were up by 8.5 per cent over the course of the year. In Scotland, property prices climbed by 8.4 per cent in the same period, but in Wales they were up by an impressive 10.7 per cent.
This puts the average property price in England at £269,000 at the end of 2020. In Scotland this figure was £163,000 and in Wales it was £184,000. Northern Ireland, meanwhile, experienced the lowest price growth of 5.3 per cent putting its average property price at £148,000.
Overall, average house prices in the UK stood at £252,000 at the end of last year, making this the highest annual price growth recorded in the residential property market since October 2014 the news provider noted.
Mark Harris, chief executive of mortgage broker SPF Private Clients, told the publication that it’s unsurprising that property prices have nudged higher in 2020.
“With demand from buyers for more space – both inside and out – outstripping supply, prices inevitably edged upwards. Detached houses continue to be the property of choice, with price growth of flats continuing to lag,” he stated.
Chief executive of asset manager SPI Capital Anne Clare Harper explained that there have been four factors pushing property prices over the course of 2020, with the desire to improve our surroundings just one of them.
The other three are the release of pent-up supply, low mortgage rates which, in effect, provide buyers with a “discount”, and the temporary reduction in stamp duty. However, this is due to come to an end on 31 March.
Ms Harper explained that, when the temporary stamp duty holiday comes to an end, the housing market is expected to slow. However, she also noted that despite this, it is simply more likely that house prices will continue to increase, albeit at a slower pace, rather than falling dramatically.
The BuyAssociation recently reported that the chancellor is considering extending the stamp duty holiday by six weeks, which would take it to the middle of May. The news provider cited figures from Rightmove, which estimated that a six-week extension would benefit 120,000 to 160,000 property transactions in England.
With the end of the stamp duty holiday looming, many people have been keen to progress with a property purchase to complete before the deadline.
As Tim Bannister, resident property data expert at the online property portal, explained, many people who agreed a sale or purchase last year have had the process delayed through no fault of their own.
Many of the delays that have occurred have been as a result of everyone in the industry grappling with working from home, as well as the high number of people trying to buy and sell property at this time.
If you’re looking for conveyancing solicitors in Surrey, get in touch with us today to find out how we can support your property sale or purchase.