Annual House Price Growth Rose Faster In December 2020

Friday, January 8, 2021

At Stones Residential, we know people have many questions regarding the housing market, how it ended 2020, and what is likely to happen in 2021.

We are pleased to say we work closely with many buyers and vendors across in and around Belsize Park. This ensures we are well placed to help people learn about the local area, and to find what they are looking for.

We also stay in touch with the latest news regarding the housing market. With the country back in lockdown, we know these are challenging times, and people are looking for clear guidance and information.

We are here to assist you, and if you have any housing market queries, please get in touch.

The housing market is still open, Stones Residential are still operating, and your safety is paramount.

The housing market has been busy

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 would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing