Average UK house price has risen £48k over last three years

The average UK house price has climbed by 20.4% over the last three years, an increase worth £48,620, new analysis by Halifax has revealed.

This rise, between January 2020 and December 2022, has seen the average house price jump from £237,895 to £286,515.

Halifax’s data showed that this compares to a rise of just 7.8% over the previous three-year period, between January 2017 and December 2019, which was worth £17,158.

The research, which Halifax based on its House Price Index, examined how the rate of house price growth has varied for different property types across the UK since the start of 2020, just before the COVID pandemic hit the country.

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, an increase of £49,227. In cash terms, the South East of England saw the biggest jump, up by £69,224 (21.3%) from £325,448 to £394,672.

Halifax also reported that the average price for bigger homes has grown at nearly twice the rate than for smaller properties.

Heading into the pandemic, Halifax described the rate of annual house price inflation for detached properties as “relatively sluggish” compared to other property types, at 1.7% in January 2020 compared to 4.1% for flats, suggesting that buyers may have been less willing to pay a premium.

However, by the start of 2021, annual growth for detached homes had jumped to 9.2%. Fuelled further by cuts to stamp duty, 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 prior three-year period between January 2017 and December 2019.

Mortgages director at Halifax, Kim Kinnaird, said: “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.

“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.”

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