House Prices in the North West Increase by 11.2% in 2020

Average UK house prices increased by 8.5% in 2020, the highest annual growth since October 2014, with the average UK house price reaching £252,000 in December 2020 (ONS).

The highest growth rate was seen in the North West of England at 11.2%, in stark contrast to London at just 3.5%.

What has caused the increase in house prices?

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There are seven key factors thought to have contributed towards price increases:

1. Stamp Duty Land Tax holiday the came into effect in July 2020 providing buyers with a discount
2. Pent up demand from the first lockdown and buyers holding out for a Brexit deal
3. Increase in single person households as a result of lockdowns
4. Demand for larger properties, or, properties with flexible space as more people are now working from home
5. Desire to improve surroundings, moving to a better location, or, a better quality of home
6. Cheap borrowing as mortgage interest levels are at their lowest rate
7. Safety of investment into property, as it is a stable asset with low levels of volatility

The Office of National Statistics commented, "Recent price increases may reflect a range of factors including pent-up demand, some possible changes in housing preferences since the pandemic and a response to the changes made to property transaction taxes across the nations" .

There is speculation that the Stamp Duty Land Tax holiday will be extended in the March budget, however, the other factors still remain; therefore, 2021 should see yet another year of high property price growth.

Regional Variations

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The North West in the top performer by far with 11.2% growth, whilst London saw the slowest level of growth at just 3.5%, but it still maintains the highest average house price at £496,000.

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Regency Invest focus on areas with high rental returns and high levels of property price growth and the North West delivers on both.

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Our carefully selected buy-to-let property investments in the North West include:

• Wardour Point Manchester – prices from £144,00 with 6% returns and priced 20% below market value
• Bishop Square Liverpool – prices from £99,000 with up to 11% returns for short-lets and priced 20% below market value
• St Annes Garden Liverpool – prices from £86,000 with up to 10% returns for short-lets

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