January House Price Index highlights:
- House prices continue to climb in January – up 1.2% in the month
- The South West sees the highest increase in house prices over the last year
- The stamp duty holiday continues to influence the housing market
- London has lowest price growth of all regions
Richard Sexton, director at e.surv, comments:
“2020 proved an exceptional year in almost every way and many of the changes it ushered in won’t be easily swept aside. Indeed, our data shows that the remarkable growth in property prices we saw in the second half of last year has continued into 2021. Rapid growth in the South West, East Midlands and the North West means that average property prices have started the year up close to 9% on January 2020.
“There are, as always, a number of factors at play, but we may well have moved beyond the release of the demand that was pent-up at the start of 2020 and into a new phase for the market. For many, the pandemic has proved very financially trying, but this hasn’t been universal. For some households, where people have kept their jobs and transitioned totally to home-working, the pandemic has provided an opportunity to cut spending and build their savings.
“For these consumers in a more fortunate financial position, the combination of low mortgage rates and the Stamp Duty holiday have made entering (or often re-entering) the property market an attractive prospect. Many buyers have made the decision to make a move in the last year and the popularity of larger properties with more outdoor space has increased greatly, as buyers have re-evaluated their current living situation.
“That activity in the property market has been able to continue at all over the last year, is due in a large part to the industry’s willingness to embrace technology and work innovatively. From remote valuations to virtual house viewings, the industry has shown that it is able to adapt and change to meet extraordinary circumstances – a positive sign for the future.”
Average House Prices in England and Wales (Jan 2019 – Jan 2021)
About the e.surv House Price Index
The monthly e.surv House Price Index reports on transaction numbers and the changes in average house prices across England and Wales. The Index uses the actual price at which every property in England and Wales was transacted, including prices for properties bought with cash, based upon factual Land Registry data as opposed to mortgage-based prices, asking prices or prices based upon samples.
Note: The e.surv House Price Index was formerly the LSL Acadata House Price Index. Content and methodology are unchanged. Please refer to the Notes at the end of the report for more information.