UK house price growth climbed to 7.6% in November

UK average house prices increased by 7.6% over the year to November 2020, according to the latest Office for National Statistics (ONS) House Price Index.

This growth figure was up from 5.9% in October to take prices to a record high of £250,000 – the highest annual growth rate the UK has seen since June 2016.

The figures also showed that the average UK house price in November was £18,000 higher than in November 2019.

Average house prices increased over the year in England to £267,000 (7.6%), Wales to £180,000 (7.0%), Scotland to £166,000 (8.6%) and Northern Ireland to £143,000 (2.4%). The ONS also revealed that the average house price in London surpassed £500,000 for the first time in November.

Legal & General Mortgage Club director, Kevin Roberts, suggested the latest ONS figures will be “welcomed” by existing homeowners.
 
“The resilience of the housing market continues to shine through as people remain encouraged to move house with or without the benefit from the stamp duty relief, no doubt also encouraged by the rollout of the a COVID-19 vaccine,” Roberts said.

“There remain challenges however and the government’s decision to extend the furlough scheme until the end of March will be welcomed by many homeowners exploring their options.

“Buyers wanting to access the best and most suitable mortgage products should absolutely  consider speaking with an independent mortgage adviser, particularly as we draw closer to the government’s stamp duty holiday deadline, which is creating very high demand.”

Trussle head of mortgages, Miles Robinson, added: “Despite a challenging economic climate, there was a huge demand for property in the second half of 2020. We saw a 48% increase in mortgage submissions from May through to November, compared to the same period in 2019. This growth in demand has bolstered the market and the industry has risen to the challenge. 
 
“However, the domino effect means it now takes on average 134 days to complete on a property purchase in the UK. As such, buyers should expect property purchases to take longer and should factor this into their decision making.
 
“Demand has remained strong and there appears to be no immediate sign of a property slow down. However, it would be wise to exercise some caution as we near the end of the furlough scheme, the stamp duty holiday, and the impact of a third national lockdown unravels.”

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