Higher demand has seen house prices rising 6.9% in the last year following the Covid lockdown with prices starting to ease.

House prices are higher by 6.9% over the year to October 2021 driven by demand from home movers after the Covid lockdown, says Zoopla with average property values increasing to £239,800.

This compares to a 3.5% per annum rise the previous year and with house prices easing growth is expected to be firmly positive at 3% for 2022.

Average values for houses from terraced to detached increased the most, up 8.3% during the year which is double the five-year average of 4.2% growth.

Regional cities with strong growth

Cities in the regions show the highest growth in house prices with Liverpool up 10.6% over the year, almost twice last year's figure of 5.4%, with average property values of £141,000.

Manchester is next with prices rising 8.7% year-on-year and average property values of £197,900 followed by Sheffield up 7.9% and values of £157,000.

These are strong increases considering the average apartment values have increased by only 1.6% which is slightly above the five-year average of 1.2% growth.

The continued rise in city house prices means first time buyers would require higher deposits, larger mortgage or higher earnings to purchase their first home.

See how much the mortgage repayment costs would be if you are buying a new property in the city at this link:
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In contrast London was significantly impacted by the pandemic and lockdowns with growth over the year of only 2.3% and average property values currently at £496,600.

The only city with a fall in house prices is Aberdeen reducing -0.2% for the year and average property values are £143,700

For older homeowners, rising house prices can allow equity release buyers to release lump sum cash upfront to use for any purpose such as maintaining their lifestyle, holidays or home improvements.

Supply of houses still constrained

The demand for property remains 28% higher than the five-year average due to the change in homeowner priorities after the Covid lockdowns since March 2020.

About one in 16 privately owned properties were sold last year which is higher than the one in 20 during 2019 and this is the busiest market since 2007.

The supply of new houses to the market is 40% lower than the five-year average compared to the average for all property types which is lower by 5% to 10% below typical levels.

After the first lockdown homeowners in flats preferences were for more indoor and outdoor space offered by houses resulting in supply of flats increasing towards the end of 2020.

Demand for larger homes in commuter zones and rural areas has pushed the prices higher to an average of 8.3% compared to flats rising only 1.6% in the last year.

For remortgage buyers these rising house prices give them an opportunity to release capital to increase indoor space such as a loft conversion or extension.

The supply of properties is typically 50% higher than the start of December offering those that want to move the chance to find more suitable homes to buy.

What are your next steps?

Speak to our LCM mortgage advisers if you are buying your first home and want the best mortgage deal. Learn more by using the property value tracker chart and equity release calculator.

Start your free first time buyer quote and we can search competitive mortgages for your new home at this link:
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If you release equity from your home to make improvements or buy a new car, we can find products to meet your needs so begin your equity release quote for the latest provider offers.