e.surv: House prices up 9.8%

Average house prices increased by 9.8% across England and Wales in the year to March 2021, according to e.surv Chartered Surveyors’ House Price Index.

On a monthly basis, average property prices rose by 0.7% between February and March 2021.

Overall, the average price of a house in England and Wales was £339,160 at the end of March.

ONS: House prices increased 7.5% in 2020

For the seventh consecutive month, the South West had the highest rate of annual house price growth, at 14.8%.

The North West and the East Midlands retain their second and third positions, with growth rates of 12.6% and 11.8%, respectively.

In contrast, while the growth rate in Greater London did rise from 2.2% to 3.7% on a monthly basis, it is still noted as having the lowest rate of growth.

The South East and East of England followed, with growth rates of 8.4% and 7.6%, respectively.

Richard Sexton, director at e.surv, said: “This month’s Index shows that in the last year, England and Wales have seen the average price of a home increase by some £30,000.

“On an annual basis, this is the highest rate of increase for over six years. It is a very clear statement about the resilience of the housing market and how well it has responded to the challenges of the pandemic and the fiscal remedies that have been administered in the last year.

“This level of sustained price growth underlines how well the property market continues to perform in comparison to other areas of the economy.

“To understand why this is happening, we need to look at a combination of monetary, fiscal, public health and political responses of recent times.

“Demand has been injected into a market of historically low interest rates that have supported buyers’ affordability since 2008.

“Lockdowns have fuelled people’s willingness to make lifestyle and life-stage changes and the injection of fiscal support, in the form of the temporary stamp duty holiday, has further supported their ability and desire to move home.

“We now also have the return of higher LTV lending which many believe will, in the coming months, offer more welcome support to the market.

“We should be cautious when it comes to London’s lower growth rate. The capital’s market is evolving but the weaker pound has stimulated activity in the more exclusive markets in London though this hasn’t made a notable impact on the index at this stage.

“London remains a safe-haven for many international buyers and their families. The weak pound helped transactions in ultra-high-net worth markets in the capital rise last year.”