The cost of the average property rose by 10.2% to a high of £256,405
House prices increased at the quickest rate in 14 years during March as the chancellor extended the government’s stamp duty relief policy.
According to the Office for National Statistics, the cost of the average property rose by 10.2% to a high of £256,405 in the year up to March.
A surge in demand for detached houses saw their value grow by 11.7%.
London saw the lowest growth for the fourth consecutive month, at 3.7%, while the Yorkshire and Humber region saw a surge of 14%.
“UK average house prices increased by more than 10 per cent in the year to March 2021, the highest rate of annual growth since 2007 and the 11th consecutive monthly rise,” said Sam Beckett, head of economic statistics at the ONS. The figures come as Rishi Sunak extended the government’s stamp duty holiday, in addition to other measures aimed at propping up the UK housing market.
Despite a downturn in the wider UK economy, the property market remained resilient, as house prices reached record levels. One cause for this was a surge in demand, as people saved more during the pandemic, and then reassessed their living situations.
Some experts think that house prices could keep up their impressive form for the remainder of the year.
Mike Scott, chief analyst at the estate agency Yopa, told The Guardian: “We believe that the lifting of Covid-19 restrictions – combined with people’s reassessed post-pandemic housing needs, the ‘accidental savings’ that many have made over the past year and the desire for a post-pandemic fresh start – will keep house prices high for at least for the rest of this year.”
“There may well be price decreases in some market sectors, such as inner-city flats, but these will be more than outweighed by price rises for property types that are in high demand for the post-pandemic lifestyle.”
Nationwide’s has suggested that high demand and limited supply could fuel a summer boom, with house prices possibly returning to double-digit annual growth rates by June.
