Average house price has risen nearly £50,000 since start of 2020, says Halifax.
Despite the recent dip in UK house prices, the average price of a home in this country is up almost £50,000 on average since the beginning of the pandemic.
According to Halifax, which carried out the research, it is the equivalent of a 20.4% rise on average, as the country approaches the third year anniversary of when it went into its first lockdown.
At a national level, average house prices grew by 20.4% between January 2020 and December 2022, up a total of £48,620 – from £237,895 to £286,515.
By contrast, in the three years prior from January 2017 to December 2019, average residential property prices increased by just 7.8%, or £17,158.
Wales saw the strongest house price growth of any UK nation or region during the past three years, rising by 29.3% from £168,101 to £217,328. It is a rise of £49,227.
In cash terms, the South East of England saw the biggest jump, up by £69,224 – the equivalent of 21.3 per cent – from £325,448 to £394,672.
The average price of a flat increased 13.3 per cent, or £19,028, between the start of 2020 and the end of 2022, which is less than houses.
Semi-detached and terraced houses saw their average value increase 23.1% – or £55,361 – and 21.1% – or £38,743 – respectively in the past three years.
Kim Kinnaird, of Halifax, said: “The pandemic transformed the shape of the UK property market, and while some of those effects have faded over time, it’s important we don’t lose sight of the huge step change seen in average house prices.
“Heightened demand created a much higher entry point for bigger properties right across the country, and that impact is still being felt today by both buyers and sellers, despite the market starting to slow overall.
“Taking detached houses as an example, average prices remain some 25% higher than at the start of 2020. Even if those values were to fall by 10%, they would still be around £50,000 more expensive than before the pandemic.”
Reflecting on the data, Tom Bill, head of UK residential research at Knight Frank, said: “People were leaving London long before the pandemic due to affordability pressures in the capital. The pandemic turbo- charged this levelling-up process for UK house prices, although demand was initially skewed towards more picture-postcard locations and larger properties.
“Broadly speaking, more affordable parts of the country have seen stronger house price growth, closing the gap with London. As the gravitational pull of cities grows and buyers reassess their workplace/home balance, property prices in overlooked and far-flung parts of UK commuter belts will benefit.”
