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 Lack of stock still the key reason for double-digit house price rises

Government data shows the average UK house price increasing by 10 per cent on an annual basis in November.

On a monthly basis, prices went up 1.2 per cent taking the average house price in the UK to £270,708.

The ONS data shows that in England the annual rise was 9.8 per cent, while in Wales it was 12.1 per cent and specifically in London 5.1 per cent.


Quilter mortgage expert Karen Noye says: “We are currently at an interesting juncture. Headlines are reporting that the worst of the pandemic is behind us and life is likely to finally make a return to normality, particularly as the government is rumoured to soon change its Plan B rules and put office work back on the table.

“How such a change would translate into people actually returning to the office is yet to be seen, but if a shift were to take place then the race for space we have witnessed in recent times may well be halted and could help to finally stall house price growth – particularly if this were alongside an interest rate hike.

“While house price growth may eventually start to slow, at the moment the housing market is defying everyone’s expectations. Many had hoped that with the stamp duty holiday drawn to a close, the market would finally ease off and prices would start making their way back down to earth, yet this does not seem to be the case.”

Director of Benham and Reeves estate agency, Marc von Grundherr, says it’s “now abundantly clear that the sector is standing tall on its own two feet” in the wake of the stamp duty break.

"A slight slow in pace is inevitably on the cards as the industry took a well earned break during the Christmas period, but we’ve seen strong signs already this year that this market momentum has carried on where it left off in 2021.”

And Nick Leeming, chairman of Jackson-Stops, adds: “Whilst today we see average house prices up slightly from those recorded in October, the figures still reflect lack of supply in the market and are therefore impacting levels of demand in the year to November 2021.

“It is evident that this imbalance between stock and demand will continue to underpin housing activity in coming months and this is reflected by what we are seeing across our branches where the complex and ongoing changes to the nation’s working patterns and lifestyle aspirations have only heightened the importance Britons place on owning a home.”


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