Nick Leeming, Chairman of Jackson-Stops, comments on the latest ONS/Land Registry House Price Index
“Yesterday’s data reveals that house prices increased for the fifth month in a row in September 2020; the housing market’s closure resulted in a wave of demand from buyers who either had to put their plans on hold or are choosing to move now because of a strong desire for a change in their lifestyles following the pandemic. When demand outstrips supply, prices naturally rise.
“House price growth this month is almost double what it was in September last year, as we start to see the true impact of the stamp duty holiday take hold. Despite the incentive being introduced in July, housing transactions take weeks to progress from offer to completion, therefore this is the first month we can begin to assess the benefits of Sunak’s stimulus. The annual uplift in house prices of nearly 5% suggests that sellers may well be factoring in the savings buyers are making into the guide price of their homes, so that they also benefit from the incentive.
“While all regions of the UK reported growth in September, the South West and the North West led the charge – each experiencing price growth of more than 6% growth. Emerging commuter hotspots, Cheltenham, South Norfolk and South Oxfordshire, performed particularly well, as demand increased for further a-far commuter towns, largely driven by families in the search for more space in the home and outdoors afters months cooped inside during lockdown. This shift is reflective of what our offices are seeing across our network.
“House prices in London also continue to rally and are now 5% up on where they were in April and at a record high. The elephant in the room for all regions , of course, continues to be what will happen to prices if the stamp duty holiday ends in March. This policy has been critical in keeping the market moving throughout some of the toughest conditions this country has ever experienced. The Chancellor has an opportunity with his Spending Review next week to maintain momentum in the by either extending the policy or by providing relief for buyers elsewhere.”
UK House Price Index: September 2020
- UK average house prices increased by 4.7% over the year to September 2020, up from 3.0% in August 2020, to stand at a record high of £245,000.
- Average house prices increased over the year in England to £262,000 (4.9%), Wales to £171,000 (3.8%), Scotland to £162,000 (4.3%) and Northern Ireland to £143,000 (2.4%).
- London's average house prices hit a record high of £496,000 in September 2020.
