The Strategist

Analysts: UK property prices show record jump

05/20/2021 - 04:17

The average price of residential property in Britain rose 10.2% in March compared to the same period last year, amounting to £256,000 ($363,000).

Guy Kilroy
Guy Kilroy
These figures were released on Wednesday by Britain's National Office of Statistics (ONS). This is the biggest increase in prices since August 2007.

Prices rose the most in Wales (11%) and Scotland (10.6%), prices in England rose 10.2%, in Northern Ireland - only by 6%. Property prices in London significantly lag behind the national average and the growth in other parts of the UK - there they increased by only 3.7%. 

Experts attribute the significant increase in property prices to the ongoing temporary abolition of state fees on property purchases, as well as the desire of people to buy larger homes, often in rural areas and small towns, amid a pandemic and work from home.

"In our view, the removal of COVID-19 restrictions, combined with people reassessing their housing preferences during the pandemic, the 'windfall savings' that many made last year and the desire to start from scratch after the pandemic will help keep prices high for at least the rest of this year," said senior property analyst at YOPA Mike Scott. - There may be a drop in prices in some sectors of the market, such as flats in the city centre, but this is more than offset by an increase in prices for the types of properties that are in high demand with the lifestyle that has been prevalent since the pandemic.