Average home prices in the U.K. increased by 7.5% year-over-year in January 2021, but this was down from the 8.0% we saw in December 2020. (ONS)
Average home prices increased in:
- England £267,000 (7.5%)
- Wales £179,000 (9.6%)
- Scotland £164,000 (6.9%)
- Northern Ireland £148,000 (5.3%)
Andrew Atkinson at Bloomberg reports that the decline may prove to be temporary as many estate agents are predicting another good year for housing because “Optimism about the outlook for the economy has grown since more than half of British adults have been vaccinated against coronavirus and the government set out plans to end lockdown.” (Bloomberg)
Atkinson also notes “Chancellor of the Exchequer Rishi Sunak’s decision this month to extend a tax break on homebuying until June 30 is also expected to boost demand.”