2020 was a roller coaster of a year when it came to house prices. It got off to a strong start and then slumped in the spring and summer as the first national lockdown took their toll on prices. This didn’t last long though and prices shot up again shortly afterwards.
The rise in house prices is due to a combination of several factors including the pent-up demand combined with people spending more time at home. Buyers craved a change with rural areas seeing the highest demand, more space to work and live were also high on priority lists. The ‘Stamp Duty Holiday’ announcement also prompted people to make the change and get moving. The holiday has seen people save thousands on house purchases and has propped the market up as people take advantage of massive savings.
Halifax has reported that prices were up 6% in December when compared to December 2019, with a slight increase from the month before.
December’s price increase brings us to the sixth consecutive month that prices have risen and finishes 2020 on a high that people may not have expected. This has bought the average house price up to £253,374.
Mortgage approvals are also sitting at a 13-year high meaning more and more people are able to make that first or second step on the property ladder.
Options on what the 2021 market will hold remains divided, with the stamp duty holiday still in play until the end of March there are currently no signs of a slowdown.