UK house prices increase as lockdown boosts demand for more space

UK house prices rose 1.2% in November, as buyers sought more space and moves from urban to rural locations during a year that has been dominated by lockdowns.

Halifax said average prices reached £253,243 last month. That is 1.2% higher than in October and 7.6% up on November last year.

The mortgage lender added that in the latest quarter (September to November), house prices were 3.8% higher than in the preceding three months.

The stamp duty holiday announced in July and pent-up demand after lockdown has boosted the housing market following a difficult end to the first quarter. At that point people were urged to avoid moving where possible, and restrictions were only eased in May.

Russell Galley, managing director of Halifax, said: “With mortgage approvals at a 13-year high, the current market continues to be shaped by a desire for more space, the move from urban to rural locations and indications of a trend for more home working in the future.”