Nick Leeming, Chairman of Jackson-Stops, comments on the latest ONS/Land Registry House Price Index: 20 January 2021

Nick Leeming, Chairman of Jackson-Stops, comments on the latest ONS/Land Registry House Price Index:

“The housing market’s Coronavirus recovery has far surpassed expectations; today’s data reveals that prices have now reached record highs. Pent up demand, a re-evaluation of lifestyle aspirations and the stamp duty holiday caused house price growth to return to levels not seen since before the Brexit vote in 2016. Year-on-year price increases in November are the highest achieved all year, and separate data shows that mortgage approvals for purchases that month hit the highest since August 2007.
“The market was firing on all cylinders in November and our own branch data reflected this, with completions across our national network up 71% in November in comparison to three months prior.
“In particular, prices in London have rebounded strongly, partly driven by a return of international buyers returning to areas such as Kensington and Chelsea (29% increase in prices), to beat the additional foreign buyer tax due to be introduced in April. While locations such as Derbyshire, Cotswold and Northumberland continued to experience a boost from those looking to relocate to more rural locations, after being cooped up in cities during the height of the pandemic. As a result these areas have all seen price increases above 10%.
“While we have had an extraordinarily busy winter, spring is traditionally the start of our busiest season and we don’t expect buyer and vendor appetite to drop off this year, no matter what the Chancellor decides on stamp duty. However, the impact that lockdown has had on lending, surveying and conveyancing cannot be ignored. Keeping momentum in the property market is vital for the country’s economic recovery, and I do urge the Chancellor to consider how to ease the market out of the stamp duty holiday to avoid the cliff edge government has created.”

  • UK average house prices increased by 7.6% over the year to November 2020, up from 5.9% in October 2020, to stand at a record high of £250,000; this is the highest annual growth rate the UK has seen since June 2016
  • London’s average house price surpassed £500,000 for the first time in November 2020
  • The North East is the final English region to surpass its pre-economic downturn average house price peak of July 2007, to now stand at £140,000