Housing market activity has come full circle in 2020 and will end on a high, despite being closed for several months due to the pandemic, according to the latest report by Hometrack.
The annual rate of UK house price growth has moved higher to 3.9% in November, up from 1.3% a year ago. The 3-month growth rate peaked at 2% in September and has slowed, suggesting annual growth will start to plateau at c.5% in Q1 2021.
The impetus for house price growth is coming from northern England and Wales where affordability remains less of a barrier to price growth. Average prices in the North West are increasing at 5% followed by Wales and Yorkshire and the Humber (both 4.9%).
At a city level, Manchester is registering growth of 5.7% followed by Leeds, Nottingham and Liverpool all recording growth over 5% per annum.
Richard Donnell, research and insight director at Hometrack, said: “Market conditions remain strong. Demand has slowed since the summer but remains 33% higher than a year ago when the General Election impacted levels of activity. Over the whole of 2020 we have recorded 40% more demand for housing than in 2019. The flow of new supply onto the market has been 4% higher than 2019 and this supply/demand mismatch explains why house price growth is increasing.”