The UK’s median home value has increased by Â£27,000 in 2020, according to recent data released by the Office for National Statistics (ONS). This marks a significant increase from the previous year, where the median home value only increased by Â£2,000.
The ONS data also revealed that the average house price in the UK has risen to Â£250,000, which is a 7.6% increase from the previous year. This increase in house prices can be attributed to a number of factors, including the stamp duty holiday introduced by the government in July 2020, which has encouraged more people to buy homes.
The stamp duty holiday has been a major factor in the increase in house prices, as it has allowed buyers to save up to Â£15,000 on their property purchases. This has led to a surge in demand for homes, which has driven up prices across the country.
Another factor contributing to the increase in house prices is the low interest rates offered by banks and building societies. This has made it easier for people to get mortgages and has encouraged more people to buy homes.
The pandemic has also played a role in the increase in house prices, as more people are looking for larger homes with outdoor space. With many people now working from home, there has been a shift in priorities when it comes to choosing a home, with more people looking for properties with home offices and gardens.
Despite the increase in house prices, there are concerns that this could lead to a housing bubble, which could burst in the future. This could lead to a sharp drop in house prices, which could have a negative impact on the economy.
Overall, the increase in house prices in the UK is a positive sign for the housing market, but it is important to monitor the situation closely to ensure that it does not lead to a housing bubble.