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House prices saw the strongest growth in six years in the final month of 2020, figures from the Office for National Statistics show. House prices were up 8.5% year-on-year in December, hitting an average of £252,000. This compares to growth of 7.1% in November and is the highest annual growth reading since October 2014. Wales saw the highest growth, with prices rising 10.7% to an average of £184,000, followed by England with an 8.5% increase taking the average to £269,000. London recorded the lowest annual growth rate in the UK, where average house prices increased 3.5% in the year to December. Prices fell in the capital by £5,000 between November and December, although they are still the highest on average in the UK, at £496,000. The increase in the UK average seen toward the close of 2020 has been driven by pent-up demand amid the initial lockdown and the stamp duty holiday, with analysts saying demand and prices may wane as the tax relief comes to an end at the end of March. Howard Archer, chief economist of EY Item Club, said elevated housing market activity and robust prices “will prove unsustainable sooner rather than later” and predicted that prices will fall by around 5% this year.
Daily Mail (17/02/2021) The Daily Telegraph (17/02/2021) Evening Standard (17/02/2021) Financial Times (17/02/2021)
UK house prices soared to record highs after the first lockdown, due to a combination of pent-up demand, the stamp duty holiday and the urge to exchange cramped city flats for larger homes with gardens. Affordability is now at its worst level in 10 years, with the average home costing almost 10 times the average income. The average salary stands at £25,123, while the average house price is 9.94 times higher at £249,633. London remains the least affordable with a score of 15.74, followed by the South East and South West. The North East is the most affordable region at 6.34, followed by Northern Ireland and Scotland. Benham and Reeves said buyers currently need a minimum of one year's salary for the average deposit.
Daily Express (12/02/2021)
Chancellor Rishi Sunak is reportedly considering a six-week extension to the stamp duty holiday. The current tax cut is due to end on March 31 but many campaigners and industry insiders have called for the holiday to be extended in light of the latest lockdown and the extended furlough scheme. Mr Sunak is said to be considering the extension to stop buyers from falling into the “completion trap”. A six-week extension would see the deadline moved to mid-May, giving concerned buyers more time to complete sales and alleviate the risk of transactions falling through.
Daily Express (16/02/2021)
In many parts of the country less than half of homes currently for sale are already under offer or sold subject to contract, according to research by data company PropCast. London, where two-thirds of properties for sale are yet to receive an offer, is currently the worst place to be selling a home. In Cumbria, Lancashire, Lincolnshire and Tyne and Wear less than half of properties on the market are under offer or sold subject to contract. PropCast said: “As more and more home buyers realise they are going to miss the March 31 stamp duty deadline, fall throughs and price reductions are going to increase”.
The Daily Telegraph(15/02/2021)
The average house price slipped by 0.3% in January, according to Halifax’s latest house price index, in signs that the property boom could be running out of steam. The building society’s figures marked the biggest monthly fall since April 2020, although typical house prices are still £13,000 higher than a year ago. Across the UK, average property values stood at £251,968 in January. This was a 5.4% annual increase, compared with January 2020. This also compared with 6.0% annual price growth recorded in December. “The average UK house price slipped by 0.3% in January, the biggest monthly fall since April last year. Whilst this pushed the typical property value down to its lowest level since October, at just under £252,000, prices are around £13,000 higher than a year ago,” commented Halifax managing director Russell Galley.
Evening Standard (05/02/2021) The Independent (05/02/2021) Daily Express (05/02/2021)
House prices in London and the Midlands may be heading for a fall because of a "mass exodus" of foreign workers since the pandemic. The UK population may have dropped by up to 2% in the past year as work dried up and foreigners left, with most of the outward migration going from the capital and the Midlands, according to Capital Economics. Andrew Wishart at the consultancy said: "Our analysis suggests that the sudden drop in the population has led to a huge rise in vacancy rates in the London and Midlands rental markets. House prices in those regions are also most at risk, both from the direct reduction in demand from foreign citizens and the risk that landlords respond to higher vacancy rates and lower rents by selling up."
The Times (08/02/2021)