The UK’s unstoppable rise in property prices continued throughout 2021, with the average English property now valued at 10% more than it was at the end of 2020. But what’s an average property? Look into the data and there’s a lot of variation between the regions and property types, which means that this figure isn’t telling the whole story.
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.