LEAGUE TABLE OF BRITAIN’S BIGGEST 2020 HOUSE PRICE RISES

LEAGUE TABLE OF BRITAIN’S BIGGEST 2020 HOUSE PRICE RISES
Jan 21 , 2021

London and other urban areas dominate the league table of locations seeing the biggest house price rises of 2020.


This is despite the apparent rush from the city to the country because of the pandemic.


Figures from the Halifax show Islington in north London with the fastest growth in 2020, with the average property up by 13.4 per cent to £727,922.


Outside London, the biggest movers were Leeds – the country’s second-fastest rise of 11.3 per cent for an average of £247,116 – and Wolverhampton in fourth place, up 9.5 per cent for an average of £217,837.


Russell Galley, Halifax managing director, says: “Much like many other things about 2020, it would have been hard to predict which areas would see the greatest movement in average house prices this year.


“For example, depending on the borough, you could be looking at the biggest price rise or the biggest falls in the capital.


“House prices have leapt by more than 11 per cent in Yorkshire’s great cosmopolitan city of Leeds and almost 10 per cent in Wolverhampton at the heart of the Black Country.


“Further North, Doncaster and Inverness have also seen healthy growth and whilst the overall house price trend this year has been upward, anyone looking to buy in Paisley, Hackney or Aberdeen will find homes cost a little bit less than last year.”


Greater London had nine of the top 20 places for house price rises – Croydon saw a 10.9 per cent rise to £397,538, compared with a rise of just one per cent the previous year.


But pockets of the capital saw price falls – Hackney dropped an average 1.5 per cent


Top 20 risers:


1. Islington – up 13.4% to £727,922


2. Leeds – 11.3% to £247,115


3. Croydon – 10.9% to £397,538


4. Wolverhampton – 9.5% to £217,837


5. Hounslow – 9.1% to £523,659


6. Doncaster – 8.8% to £176,728


7. Inverness – 8.1% to 195,534


8. Bournemouth – 7.7% to £310,205


9. Watford – 7.7% to £460,102


10. Romford – 7.6% to £391,000


11. Grimsby – 7.5% to £168,035


12. Richmond Upon Thames – 7.5% to £762,749


13. Kingston Upon Thames – 7.4% to £599,317


14. Bolton – 7.1% to £181,853


15. Belfast – 7.1% to 190,486


16. Lambeth – 7% to £618,445


17. Sutton – 6.9% to £468,180


18. Newcastle Upon Tyne – 6.6% to £213,887


19. Hillingdon – 6.3% to £493,671


20. Edinburgh – 6% to £274,246


What could happen to house prices in 2021?


The property market has experienced a mini boom in 2020, and the big question many of you want answered is: will prices continue to rise in 2021?


Rightmove forecast a robust 4% national average house price growth in 2021. However, they think that the price rises will be at a slower pace than 2020, which finished 6.6% up on 2019.


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It is fair to assume that the first four months of 2021 will bear little resemblance to the rest of the year. Such a diverse range of factors will pull the UK property market in different directions early this year that buyers and sellers are likely to respond in an equally wide-ranging way.


Overseas buyers may face the twin effect of a stronger pound and higher rates of stamp duty from April due to the introduction of a 2% surcharge. Will that be enough to slow the inevitable release of pent-up demand in prime London and Home Counties markets after international travel restrictions are relaxed? To a limited degree, possibly. The surcharge is likely to act as a brake on price inflation and be used as a negotiating tool by international buyers in Q2.


With the government’s furlough scheme (April) and the stamp duty holiday (March) due to expire in the next few months its hard to predict how the market will respond but expect a few months of a down turn.


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