Official: House prices rose 7.5% in year to January
UK average house prices increased by 7.5% over the year to January 2021, according to the Office for National Statistics.
This was a reduction on the 8.0% annual property price inflation recorded in December 2020.
The average UK house price was £249,000 in January, £17,000 higher than a year earlier.
Prices across the UK
Average house prices increased over the year in England to £267,000 (7.5%), in Wales to £179,000 (9.6%), in Scotland to £164,000 (6.9%) and in Northern Ireland to £148,000 (5.3%).
The North West saw the highest annual growth in average house prices (12.0%), while the West Midlands saw the lowest (4.7%).
The average house price in London increased by 5.3% over the year to January 2021. London’s average house prices remain the most expensive of any region in the UK at an average of £501,000.
Detached homes saw the greatest rise in prices, increasing by 8.6% in the year to January 2021, in comparison with flats and maisonettes which rose by just 2.6% over the same period.
Paul Stockwell, chief commercial officer of Gatehouse Bank, said: “The housing market is off to a strong start this year with prices still being driven up annually, primarily by buyers seeking larger homes and outside space, and the early signs are that demand is going to continue in the short-term making for a busy spring and summer.
“There is also the underlying factor of limited supply due to some would-be sellers holding off putting their properties on the market over fears of spreading infection, which may continue to drive prices even higher as we enter the spring.
“Easing of restrictions and optimism about returning to normality may eventually encourage more people to sell their homes, but there is so much pent-up demand from buyers that this will keep prices buoyant, especially in light of the extended stamp duty incentive.”
Nick Leeming, chairman of Jackson-Stops, added: “Higher prices continue to be driven by vast numbers of buyers who are looking to snap up stock due to a whole host of lockdown-incentivised lifestyle reasons, coupled with buyers rushing to beat the original stamp duty deadline in March.
“This created a huge gap in the supply of new property available and demand from buyers. In January, Jackson-Stops data showed that 16 buyers were chasing every newly listed property across the UK.”