According to the ONS: the average house price in the UK increases by 7.5%
Average house prices in the UK increased 7.5% over the year to January 2021, down from 8.0% in December 2020 according to the latest ONS House Price Index.
Average house prices increased over the year in England to £ 267,000 representing an increase of 7.5%, in Wales to £ 179,000 representing an increase of 9.6%, in Scotland to £ 164,000 representing an increase of 6.9 % and in Northern Ireland at £ 148,000 an increase of 5.3%.
The North West was the English region that saw the highest annual growth in average house prices at 12.0%, while the West Midlands recorded the lowest at 4.7%.
“This increase stems from the extension of the Stamp Duty Holiday”
Cloe Atkinson, Managing Director of Mortgage Engine, said: “The increase in house prices in January reflects a busy start to the year for the market, which has become more active due to the recent extension of the Stamp Duty holiday.”
“The figures are also further proof that the housing market has fully adapted to operate during the pandemic, even under lockdown conditions. Brokers and lenders are managing record levels of activity, while also handling strict lockdown restrictions and an increase in the number of borrowers financially affected by the virus.”
“A large part of this success is due to the adoption of various technology-driven solutions, from remote home views to the more widespread use of automated valuation models (AVM). With the support of technology, lenders have been able to serve their clients during the pandemic.”
“Technology has provided versatility and resilience to the market and this is one of the reasons why the industry needs to adopt technological solutions, sooner rather than later. With property prices on the rise and the market in good health, it is time for the industry to invest in this technology now, rather than catch up later.”
“These figures may influence the market for the rest of the year”
Anna Clare Harper, CEO of asset manager SPI Capital, added: “Despite being two months old, this data is relevant because it shows a more complete picture than other home price indices. This is important because, as data from the last year shows, news headlines about house price growth reflect and influence buying and selling decisions.”
“Property is emotional and positive headlines encourage buyers and sellers to hurry to avoid ‘fear of missing out.’ This, in turn, drives home price growth.”
“The growth of 7.5% in the year to January 2021, slightly below the extraordinary 8% in the year to December 2021, is significant, particularly compared to many other more volatile or underperforming assets. House prices were led by the North West, which grew 12%, while London house prices grew “only” 5.3% (still an impressive growth rate.)”
“The lowest growth was seen in the West Midlands, at 4.7% the lowest at just 3.5%. The trend for semi-detached and semi-detached properties continued to lead, with growth rates of 8.6% and 9% respectively, closely followed by semi-detached properties.”
“In general, the growth of house prices in the last year has been influenced by several important factors. House prices were driven by temporary stamp duty reduction and cheap debt as a result of very low-interest rates, which combine to offer buyers a “discount”; the continued release from pent-up supply and demand, the desire to improve, and changing lifestyle requirements among existing homeowners; and the flight to safety, as in uncertain times people want to keep their money in a stable, low volatility asset.”
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