Despite record house prices and a rapidly overheating property market fuelled by low-interest rates and government incentives, there are areas in the UK where the lasting effects of the pandemic are continuing to negatively impact the market.
In a new analysis of house price data from the Land Registry, Warwick Estates looked at how the average house price in each local authority of the UK has changed since the first reported case of Covid in January 2020. Across the UK as a whole, the average house price has climbed by 8.1% with every region of the UK enjoying positive movement.
The North East has seen the largest increase during this time, up 11.8%, followed by Scotland (9.8%) and Yorkshire and the Humber (9%). With the exception of Northern Ireland, London has seen the lowest level of house price growth since January of last year, although property values are still up 5.6% in that time.
Not every area of the capital has fared so well though and Westminster is home to the biggest price decline since Covid reached the UK, with the average house price down -5.6%; a drop of £56,575.
Tower Hamlets has also seen one of the biggest reductions in property values, falling by -3.6% (-£17,158), as has the City of London (-2.3%) and Wandsworth (-1.9%).
Kensington and Chelsea also make the list with a drop of -0.7%, while outside of London, Cambridge (-1.5%), Hartlepool (-1.4%), Stratford-on-Avon (-0.5%) and Horsham (-0.4%) have also seen a drop.
Emma Power, COO of Warwick Estates, commented: “The UK property market has been running red hot since it reopened last year, with the introduction of the stamp duty holiday boosting buyer demand and helping to bypass any major pandemic-induced decline in values.
"As a result, we’ve seen some notable jumps in property prices pretty much across the board as buyers continue to enter the market at mass.
"Unfortunately, the diverse nature of the UK property market means that not everyone is likely to benefit to the same extent, and in some cases, there’s actually been a decline in values.
"However, given the prolonged uncertainty that has hung over us for over a year now, it’s quite remarkable that these declines in house prices are restricted to just a handful of locations.”