House Price Growth Accelerates In UK

  • Post author:
  • Post category:Blog

Since the nationwide lockdown in the UK ended over the summer, the country’s property market appears to have bounced back well. The latest figures from the Nationwide House Price Index have revealed that house price growth hit its highest rate since 2016 in September.

Annual house price growth hit five per cent last month, while prices also experienced a 0.9 per cent month-on-month increase between August and September, when seasonal factors were accounted for.

The Nationwide survey also found that there has been an increase in the number of people who are moving or who are considering moving home.

It found that the desire to move was particularly strong in London, where just over one-quarter of those questioned said that they were considering moving, while around 15 per cent of respondents said that they were already in the process of moving home.

In addition, the survey found that 19 per cent of people who were considering moving before the pandemic have put their plans on hold as a result, with 27 per cent saying they’d taken this decision over concerns with the property market.

More younger people than those in older age groups had postponed plans to buy a property, with chief economist at Nationwide Robert Gardner commenting that this is likely explained by concerns about the jobs market and therefore their job security.

Among those who have moved or who are considering doing so, 35 per cent said they’d taken the decision to move to another area, while over one-quarter said it was to have access to a garden or to be able to more easily access outdoor space.

Mr Gardner explained that there are a number of factors that have contributed to the strong performance of the country’s property sector since lockdown, including the pent up demand and the stamp duty holiday.

“Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown,” he added.

This is supported by the findings of the survey among recent movers and those who are considering doing so.

Despite not being the area with the greatest price growth in the third quarter of this year, London property prices still far outpace the rest of the UK.

The Nationwide data showed that the average price of a home in the capital hit a record high of £480,857 and that prices are now 57 per cent above their 2007 levels. Around the rest of the country, prices are 21 per cent above their peak in 2007.

Meanwhile, BuyAssociation recently shared predictions from Savills, which is estimating that house prices in the UK will climb by 20.4 per cent between 2020 and 2024.

Although the organisation is not expecting to see any price growth in the housing market in 2021, as the economic challenges brought about by the pandemic hit, it does predict strong growth in the following three years.

If lockdown has made you reconsider your property needs and you’re looking for home to home estate agents in Forest Hill, get in touch with us today to find out how we can help you make your next move.