House prices in the South West of England have recorded the fastest annual growth in the UK, according to official figures, as the pandemic continues to reshape housing preferences. The Office for National Statistics (ONS) reported a 6.4% rise in the region for the year to the end of September, comfortably above the national average increase of 4.7%.
The data, based on Land Registry sale completions, showed that detached homes posted the strongest price growth across the country. The trend reflects a growing demand for larger properties with more indoor and outdoor space, driven by a shift towards remote working. A temporary stamp duty holiday introduced in the summer has added further momentum to the market.
“No part of the UK economy has flown over the Covid storm like the property market and the picture in September strengthened across the board,” said Nicky Stevenson, managing director at estate agent group Fine and Country. “The race for space is still the market's main driver. Price growth for flats and maisonettes is muted compared to larger properties, which have been flourishing amid high demand.”
Annual price increases of at least 3% were recorded in every UK nation and region, with Northern Ireland the sole exception at 2.4%. The national average property value now stands at £245,000, up from a 3% annual increase in August. London remains the most expensive area, with typical homes valued at £496,000, although its growth has been more subdued.
In the rental market, private rents across the UK rose by an average of 1.4% in the year to October. London saw a notable slowdown, with growth easing to 0.9% – its weakest rate since March 2017 – as the urban rental market cools amid changing work patterns.
