House prices in England and Wales up 7.8%

2020 closed with house prices in England and Wales 7.8 per cent higher on an annual basis, says e.surv.

The chartered surveyors’ latest data adds that the average house price finished at £326,762, which is a 1.4 per cent change on November’s average house price.

The biggest annual growth in December was seen in the South West, where average prices grew 10.9 per cent, followed by the North West, which saw annual prices go up by 9 per cent.

The weakest growth was in Greater London which clocked gains of 3.3 per cent and the East of England, at 5.5 per cent.

e.surv adds that when the average over the three months ending December 2020 are looked at, “The South East and the East of England have both moved down the growth league table by three places compared to last month – perhaps suggesting that movement away from the capital to nearby suburbs is beginning to run its course, while the South West’s exceptional growth indicates demand for countryside and coastal locations remains strong.”

Respectively the growth for these regions reads as 7 per cent, 5.5 per cent, and 10.9 per cent.
e.surv director Richard Sexton says: “[The 7.8 per cent rise] is the highest annual increase since 2016, though it is worth noting that most of this growth took place in the last six months of the year as pent-up demand was released by more relaxed coronavirus restrictions.

“Taking a longer view, average house prices in England and Wales have increased 51 per cent over the last decade. Even examining house price growth in the context of this time frame, though, 2020 still stands out.”