Back to all Blog 17 February 2021

UK house prices rose by 8.5% in 2020 – the highest rate since 2014

The latest official UK House Price Index tells of significant property price inflation last year, despite Brexit and the pandemic.

The average UK house price increased by 8.5% over the year to December 2020, according to the latest official UK HPI, up from 7.1% in November 2020, to stand at a record high of £252,000; this is the highest annual growth rate since October 2014.

In England, the average price rose to £269,000 (8.5%), in Wales to £184,000 (10.7%), in Scotland to £163,000 (8.4%), and in Northern Ireland to £148,000 (5.3%).

After a 1.1% monthly fall from November to December, London saw the lowest annual rate of inflation of any English region (3.5%) at the end of the year, while the North West saw the highest (11.2%).London’s annual rate of property price inflation slowed sharply at the end of the year, from 7.0% in November to  just 3.5% in December, thanks to a 1.1% monthly fall. “This slowing in London’s annual growth is partly a base effect,” notes the Office for National Statistics, explaining that London saw average house prices decrease by £5,000 between November and December 2020, while this time last year they increased by £10,000.

London remains the most expensive of any region, with the average house price now standing at £496,000. In November, the average price in the capital breaxched £500K for the first time.

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