Annual House Price Growth Rose Faster In December 2020

Published: 13/01/2021

With the stamp duty holiday in place, it is no surprise that the housing market ended 2020 in a robust manner.

At BR Estate Agent, we worked closely with many buyers and vendors in the latter half of 2020. Yes, it was a challenging year, but the chance to lower the overall cost of buying a home encouraged many people to be active in the market.

We’ve helped many buyers in and around Bromley

Also, we know the impact of the COVID-19 pandemic, we know many households re-evaluated what is important to them. A lot of prospective buyers have been looking for larger homes, and homes with more garden space.

We’ve also stayed in touch with the latest national figures, and there is plenty of evidence which suggests people are snapping up homes, and that house prices are rising.

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 looking to make a move in the Bromley property market, and you would like to speak with local experts, please get in touch. If you would like to arrange a property valuation, contact us and we will set this up for you. You can phone your BR Estate Agent on 020 3633 8620 from 9am till 9pm seven days a week or visit our website www.br-estateagent.co.uk for more information.