The average UK house price increased by 7.5% over the year to January 2021, down from 8.0% in December 2020, according to the latest UK House Price Index published by the Office for National Statistics (ONS).

The ONS revealed the latest growth took the average house price across the UK to £249,000 in January 2021, a level £17,000 higher than in January 2020.

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%).

On top of the government’s changes to the stamp duty threshold, the ONS also highlighted the pandemic may have also caused house buyers to reassess their housing preferences.

In its UK HPI data, the ONS reported the average price of detached properties increased by 8.6% in the year to January 2021 – compared to flats and maisonettes increasing by 2.6% over the same period.

Trussle head of mortgages, Miles Robinson, commented: “Despite a slight fall in house prices month-on-month from December 2020 to January 2021, it’s important to note that house prices are still significantly higher than the same period last year. 

“Traditionally, the property market is quieter at the beginning of the year and it’s spring that tends to spark a change in buyer momentum. However, buyer demand has remained strong throughout 2021.

“The recent Budget announcement confirming an extension to the stamp duty holiday, as well as a 95% mortgage guarantee scheme is likely to continue to boost buyer demand. This in turn could elevate house prices even further.”

In response to the figures, Masthaven director of intermediaries, Rob Barnard, highlighted that technology has allowed the housing market to operate effectively during the pandemic.

He said: “The market has been on a steady upwards trajectory since the end of the first lockdown, and this most recent data from January demonstrates that the industry has learned to operate effectively during lockdown, adapting thanks in part to tech tools, such as remote valuations and remote viewings.”

Mortgage Engine managing director, Cloe Atkinson, added: “The figures are further proof that the housing market has adapted fully to operating during the pandemic, even in lockdown conditions. Brokers and lenders are handling record levels of activity, while also managing tough lockdown restrictions and a rise in the number of borrowers affected financially by the virus.

“Technology has provided versatility and resilience for the market and this is part of the reason why the industry needs to embrace tech solutions, sooner rather than later. With property prices buoyant and the market in good health, it’s time for the industry to invest in this tech now, rather than playing catch-up later.”

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