Take houses versus flats, for instance. The average apartment increased in price by just 6.2% over the period between October 2020 and October 2021 (these are the government's most recent stats), while the value of detached houses soared by 13.8%, taking the price of the average English detached home closer to the half million mark, at £452,675. The average flat, by contrast, now comes in at £241,493 (against £227,480 at the end of 2020).
Breaking the figures down to show the value of new build property reveals a stark difference between new and old homes. New build prices rose by a significant 17.4% over the period, taking the price of the average new build property to £370,213 – a lot more than the average existing resold property, which is marked at £273,140.
But of course much depends on where in the country these properties are. London has had a much-publicised growth slowdown, caused in part by a covid-related exodus from the city to the country, which left prices for London property performing worse than anywhere else, increasing by just over 6% during the year, (though this seemed possibly to be picking up by autumn). Meanwhile, the East Midlands saw the country’s largest price increases, with property values increasing by 11.7%, followed closely by homes in the East of England, which appreciated by 11.2%. In Yorkshire and the Humber there was a rise of 11.1%, and in the South East 10.3%. Everywhere else saw prices rise by just under 10%.
So it was a good year for Winkworth’s Northampton office, taking into account the East Midlands’ impressive growth. If the UK’s average price for a terraced house is £229,815, then what does that look like in Northampton? This Victorian terrace in Perry Street, Abington, Northampton, was recently marketed at £225,000 by Winkworth Northampton. It has three bedrooms and a south-facing garden, an open plan living/dining room plus double-glazed windows and even a cellar.
Meanwhile, a similar sum will buy this four bedroom detached house in Moulton, Spalding, for sale through Winkworth Bourne. Set in a ½ acre plot it has a separate detached barn and is priced at £400,000.
Prices in London, despite their slower growth, remain in a different league. Here the average property appreciated from £486,212 in 2020 to £516,285 in 2021, while the average London detached house has tipped over the million pound mark to £1,058,055 and the average terrace is now £557,452. Looking ahead to 2022, what can we expect? Is this kind of growth sustainable, or are we due a correction? So far, it seems too early to tell – but if you’re in the East Midlands, things are certainly looking good.