"The pandemic transformed the shape of the UK property market"
Almost three years has passed since the onset of the COVID-19 pandemic, and now, new research has examined how much house prices have increased since the UK was thrust into a lockdown for the first time.
Based on data from the Halifax House Price Index, the research reveals that UK house prices have risen by 20.4% or an equivalent of around £48,620 to £286,515 over the last three years, compared to just 7.8% over the previous three years.
Wales saw the strongest house price growth of any UK nation or region over the last three years, rising by 29.3%, from £168,101 to £217,328. In cash terms, the South East of England saw the biggest jump, up by £69,224, or 21.3%, from £325,448 to £394,672.
Across the UK, the average price of a detached home rose by 25.9%, or £93,345, between the start of 2020 and the end of 2022. This compares to just 8.8%, or £28,757, in the three years prior.
The average price of a flat also increased by 13.3%, or £19,028, semi-detached and terraced houses saw their average value increase by 23.1%, or £55,361, and 21.1%, or £38,743, respectively over the last three years.
Halifax noted that one of the many impacts of the pandemic was to transform the UK’s property market almost overnight – prompting a sudden drop in activity as the market largely shut down, followed soon after by a surge in transactions as initial restrictions began to ease.
“The pandemic transformed the shape of the UK property market, and while some of those effects have faded over time, it’s important we don’t lose sight of the huge step change seen in average house prices,” Kim Kinnaird, mortgages director at Halifax, commented.
“Heightened demand created a much higher entry point for bigger properties right across the country, and that impact is still being felt today by both buyers and sellers, despite the market starting to slow overall.
“Taking detached houses as an example, average prices remain some 25% higher than at the start of 2020. Even if those values were to fall by 10%, they would still be around £50,000 more expensive than before the pandemic.”
Any thoughts on the findings of this research revealing house price inflation over the past three years or since the onset of the COVID-19 pandemic? Let us know by leaving a comment in the discussion box at the bottom of the page.
