House price growth hits six-year high as pandemic fails to quell demand
House prices grew at the fastest rate in six years in 2020, a respected tracker has revealed.
Property prices skyrocketed by 7.3 per cent across the year, according to the Nationwide House Price Index.
Home prices increased by 0.8 per cent in December alone.
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The average UK property price is now £230,920, though in London that figure is now £486,562.
Prices in the capital increased by 6.2 per cent this year.
Lockdown restrictions hit the property market hard earlier in the year with many viewings forbidden.
But once exemptions were carved out the market recovered, and was given a boost by the Chancellor’s decision to introduce a stamp duty holiday to stimulate demand.
“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,” said Robert Gardner, the building society’s Chief Economist.
Gardner warned that housing market activity could slow in the coming months as employment support programmes such as the furlough scheme are wound down.
But changes to working patterns, particularly with more Brits working from home, could provide much-needed support.