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Official: Property prices up 5.4% in 12 months to October
The housing market is still busy but experts suggest it will slow in the first few months of 2021
The average UK house price was £245,000 in October 2020, according to the Office for National Statistics.
This is £13,000 higher than in October 2019 and, at 5.4%, the highest annual growth rate the UK has seen since October 2016.
Average house prices increased over the year in England to £262,000 (5.4%), Wales to £176,000 (5.8%), Scotland to £163,000 (6.0%) and Northern Ireland to £143,000 (2.4%).
Strongest growth
The East Midlands, North West and Yorkshire and The Humber experienced the joint highest annual growth in average house prices (6.6%).
The lowest annual growth was in the East of England, where average prices increased by 3.4% over the year to October 2020.
London house prices remained the most expensive at an average of £491,000. The North East continued to have the lowest average house price, at £136,000.
Paul Stockwell, chief commercial officer of Gatehouse Bank, said: “Mortgage commitments are still being made at their highest levels since the financial crisis, and there are yet to be any signs of this demand levelling off.
“However, the start of the new year could mark a turning point as the March stamp duty holiday cut-off looms larger.
“Professionals across the industry, from estate agents to banks and brokers will be hard-pressed to get applications across the line in time, but there is a risk that a growing backlog could result in purchases going beyond the deadline and agreements falling through as buyers reconsider the value for money represented by their purchases.”
David Westgate, group chief executive at Andrews Property Group, added: “Rising redundancies and reduced mortgage availability at higher loan to values will invariably hit demand but the feel-good factor generated by a working vaccine, coupled with the continued lack of supply, could prevent the steep drop in prices some are expecting.
“With the Stamp Duty holiday, the Government has arguably created a rod for its own back as we are now facing a potential cliff-edge scenario for activity levels and prices at the end of March.
“The first quarter of 2021 could see activity levels reach fever pitch before dropping off during the Spring.”