The South West leads the way on house price growth

The South West of England saw annual house price growth of 13.9% in January 2021, the steepest rise across England and Wales, a report from e.surv chartered surveyors has found.

In the South West, which is home to cities like Bristol, prices average at £332,844.

Other areas seeing strong increases are the East Midlands (10.4%), followed by the North West (10.0%) and the West Midlands (9.5%).

Price growth is more modest in Greater London, at 3.2%.

Across England and Wales as a whole, house prices inflated by 8.7% in January to average at £330,958.

Richard Sexton, director at e.surv, said: “There are, as always, a number of factors at play, but we may well have moved beyond the release of the demand that was pent-up at the start of 2020 and into a new phase for the market.

“For many, the pandemic has proved very financially trying, but this hasn’t been universal. For some households, where people have kept their jobs and transitioned totally to home-working, the pandemic has provided an opportunity to cut spending and build their savings.

“For these consumers in a more fortunate financial position, the combination of low mortgage rates and the stamp duty holiday have made entering (or often re-entering) the property market an attractive prospect.”

Sexton added: “Many buyers have made the decision to make a move in the last year and the popularity of larger properties with more outdoor space has increased greatly, as buyers have reevaluated their current living situation.

“That activity in the property market has been able to continue at all over the last year, is due in a large part to the industry’s willingness to embrace technology and work innovatively.

“From remote valuations to virtual house viewings, the industry has shown that it is able to adapt and change to meet extraordinary circumstances – a positive sign for the future.”