Annual House Price Growth Rose Faster In December 2020

It would be fair to say 2020 was a year of ups and downs in the housing market.

With the market virtually closing down for six weeks in spring, it was a very challenging time for all involved. However, the stamp duty holiday encouraged a lot of activity and movement. The property market ended the year in a robust manner.

This is something we experienced first hand at Hunters Hornchurch. We worked closely with many buyers and vendors in the local area, and we know what people are looking for. We also stay in touch with the latest national findings.

If you are keen to make a move in the housing market in 2021, it is imperative you make an informed decision. You should call on us, and we will do what we can to make sure you find the right move for your needs.

According to the most recent Nationwide house price index, the December 2020 figure was a six year high, the annual house price growth was 7.3%. In November 2020, the annual house price growth was 6.5%.

House prices were on the rise in 2020

On the month-on-month figures, prices increased by 0.8% in December, and rose by 0.9% in November. Compared to the level in March 2020, when the pandemic took hold in the UK, house prices finished the year 5.3% higher.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “The resilience seen in recent quarters seemed unlikely at the start of the pandemic. Indeed, housing market activity almost ground to a complete halt during the first lockdown as the wider economy shrank by an unprecedented 26%. But, since then, housing demand has been buoyed by a raft of policy measures and changing preferences in the wake of the pandemic.”

Robert also said; “The furlough and Self Employment Income Support schemes provided vital support for the labour market, while a host of measures helped to keep down the cost of borrowing and keep the supply of credit flowing. The stamp duty holiday also stimulated housing demand, by bringing forward peoples’ home-moving plans. Lenders also responded by offering payment holidays to borrowers impacted by the pandemic, helping people stay in their homes rather than potentially being forced to sell.”

Robert concluded by saying; “The pandemic itself also boosted activity, as life in lockdown and changes to working patterns led many to re-evaluate their housing needs. Our research earlier this year indicated increased demand for less densely populated locations and different property types. This helps to explain why detached properties have seen greater price gains in recent quarters, while flats have underperformed. Housing market conditions have remained robust in recent months, even as the wider economic recovery lost momentum and the UK economy faced the prospect of further lockdowns and continued uncertainty about the UK’s future international trading relationships.”

If you are keen to stay in touch with the local housing market, we can help. At Hunters Hornchurch, we are on hand to ensure you receive all the guidance you need in the local property market, and we are here to assist you.