Average house price has risen nearly £50,000 since start of 2020, Halifax reveals

House prices have risen by almost £50,000 on average since the start of the pandemic.

It is the equivalent of an average increase of 20.4 percent as the country approaches the third anniversary of the first lockdown.

The substantial increase compares to a relatively low 7.8 percent increase in the previous three years, according to new data from Halifax.

A ‘race for space’ trend has emerged among homebuyers over the last three years and this is reflected in the average price of larger homes growing at nearly twice the rate of smaller homes.

During the first lockdown, activity fell due to the temporary shutdown of the housing market.

It was followed soon after by a flurry of trades as initial restrictions began to ease and measures were taken to spur the market back into action, such as a stamp duty holiday.

Halifax looked at how price growth varied for different types of real estate across the country

The Halifax data shows how house price growth varied for different property types across the country.

Nationally, average house prices increased by 20.4 per cent between January 2020 and December 2022, totaling £48,620 – from £237,895 to £286,515.

By contrast, in the three years leading up to January 2017 to December 2019, average house prices rose by just 7.8 per cent, or £17,158.

Wales has seen the strongest rise in house prices of any UK nation or region over the past three years, with an impressive 29.3 per cent rise from £168,101 to £217,328. It’s an increase of £49,227.

In cash, the South East of England saw the biggest jump, up £69,224 – the equivalent of 21.3 per cent – from £325,448 to £394,672.

Halifax has determined how the average house price by property type has changed since January 2020

Average annual home price inflation by property type, as revealed by Halifax

Different types of real estate have experienced different growth rates. For example, annual house price inflation for detached houses was relatively low compared to other real estate types.

Detached homes only saw their average value increase by 1.7 percent in January 2020, compared to 4.1 percent for apartments. But fast-forward just a few months and everything had changed, with a sudden surge in demand for larger homes.

This was driven by a number of factors, but above all was the race for space, as potential buyers sought larger properties, often in more rural areas.

This was in response to the radical changes in people’s lifestyles and work habits as a result of the lockdown.

At the start of 2021, the annual growth rate of detached houses had increased by 9.2 percent.

This table shows how regional average house prices – for all types of housing – have changed between January 2020 and December 2022

Different types of real estate experienced different growth rates during the pandemic as buyers looked for more space

This table shows how the regional average prices for detached houses have changed between January 2020 and December 2022

Fueled by further stamp duty cuts, the average price of a detached house increased by 25.9 per cent or £93,345 between the start of 2020 and the end of 2022.

It compares to just 8.8 per cent or £28,757 in the three years prior from January 2017 to December 2019.

Looking at the rate of growth, Wales saw the strongest house price inflation for detached houses in the last three years, rising by more than a third to 33.8 per cent or £86,675.

In cash terms, five regions saw the average price of a detached house rise by more than £100,000. These were the East of England, Greater London, the South East, the South West and the West Midlands.

This table shows how the regional average fixed prices have changed between January 2020 and December 2022

In contrast, demand for smaller homes in more urban areas fell during the pandemic.

The average price of an apartment increased by 13.3 per cent or £19,028 between the beginning of 2020 and the end of 2022.

However, apartments in London have been particularly hard hit, with an average price increase of just 3.8 percent.

Even with an expensive starting point of £361,954 in January 2020, this translates into an increase of just £9,996, which is the weakest price increase of any property type across all regions and countries in the last three years.

By contrast, flats in the North West of England still managed to see average value increase by £24,293 – the equivalent of 23.5 per cent – over the same period.

Semi-detached and terraced houses have seen their average value rise by 23.1 per cent – or £55,361 – and 21.1 per cent – or £38,743 – respectively over the past three years.

In both cases, Greater London saw the biggest increase in cash, up £90,076 for semi-detached houses and £69,094 for terraced houses.

In percentage terms, however, these were the smallest increases for these property types in the whole of Britain, with increases of 15.8 per cent and 14.4 per cent respectively, impacted by the capital’s higher average starting point.

This table shows how the regional average prices for terraced houses have changed between January 2020 and December 2022

This table shows how the regional average prices for semi-detached houses have changed between January 2020 and December 2022

The strongest growth since the start of 2020 for semi-detached houses was seen in the South West, up 30.8 per cent, followed by Wales, up 28.4 per cent.

For terraced houses, the North East was up 32.1 per cent and then the North West of England, up 29.8 per cent.

Kim Kinnaird, from Halifax, said: ‘The pandemic has changed the shape of the UK property market, and while some of those effects have faded over time, it’s important we don’t discount the massive incremental change in average house prices. lose sight.

“The increased demand provided a much higher entry point for larger properties across the country, and that impact is still being felt by buyers and sellers alike despite the market generally starting to slow down.

“Taking detached houses as an example, average prices remain about 25 per cent higher than at the beginning of 2020. Even if those values ​​were to fall by 10 per cent, they would still be around £50,000 more expensive than before the pandemic.”