Industry reacts to UK house price index as prices increase 8.5% in 2020

The latest index shows that the UK market finished 2020 with a huge 8.5% annual increase in house prices, climbing 1.2% between November and December alone.

Director of London lettings and estate agent Benham and Reeves, Marc von Grundherr, commented:

“An 8.5% increase in house prices is quite incredible in any circumstances, let alone against a backdrop of pandemic restrictions and global uncertainty.

For once, London is the poor relation in house price growth terms versus the rest of the country. However, while the capital has been left in the dust of other UK regions in terms of overall house price growth, a 3.5% rise is none too shabby. The London market has arguably been hit hardest and while it has taken longer reverse the Covid decline when compared to other areas of the UK, we can expect the capital to accelerate through gears, as the usual wave of foreign buyers return to the capital post-pandemic.

Historically, London is not a market that stays in the doldrums for long and when it bounces back, it does so with vigour.”