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.