Following the latest ONS house price index report which found UK average house prices increased by 7.6% over the year – the highest annual growth since June 2016 – John Goodall, CEO of Landbay, commented: “Back in April, if we had even been told that house prices would stay flat for the rest of the year, we would have grasped it with both hands, so house prices rising 7.6% in the year to end of November is higher than most people’s expectations. The fact that we also had inflation of 0.6% in December when prices normally drop also shows that underneath the lockdowns, consumer appetite to buy both houses and goods is incredibly strong.
“The rise in the amount of rent tenants have been paying in the private rental sector is also rising. ONS figures show a steady annual increase each month of between 1.4% and 1.5% and this is also backed up by the latest CPI inflation data. Between July and December 2020 rent rising contributed 0.12% to overall inflation, up from 0.09% from April to June.
“The one area of the country where rents drop back a little is London. ONS data highlights the falling growth in London rent likely as people move out of the capital due to Covid and homeworking, closely followed by the South East. This trend is likely to continue as people reassess their housing needs.”