Value of average UK property went up by £10,000 in 2020

Saleha Riaz
·4-min read
Locations outside London with the biggest increase in housing value include homes in coastal and rural locations. Photo: Getty Images
Locations outside London with the biggest increase in housing value include homes in coastal and rural locations. Photo: Getty Images

The average value of a home in the UK rose by £10,177 ($13,470) in 2020, equating to an increase in value of £27.81 per day.

Meanwhile, he average London property increased in value by £19,609, property search website Zoopla revealed in a new report.

“Despite the rollercoaster year caused by COVID-19, and the subsequent lockdowns, average housing values increased in all parts of the country in 2020," the report noted.

In England, the best performing regions outside of London was the South East, with the average property in the region increasing in value by £12,552 in 2020. It was followed by the South West (£11,671), the East of England (£10,108), the East Midlands (£9,470) and the North West (£9,059).

Chart: Zoopla
Chart: Zoopla

Properties in Wales ranked in sixth place with an annual increase in value of £8,706, higher than those in the West Midlands (£8,567) and Yorkshire and The Humber (£8,331).

Properties in Northern Ireland (£5,575) performed better than those in the North East of England (£5,084) in 2020.

WATCH: Why are house prices rising during a recession?

Locations outside London with the biggest increase in housing value include homes in coastal and rural locations, “reflecting the desire of many home hunters for a change of scenery and more space” amid the pandemic, Zoopla said.

Homes in Windsor in South East England ranked in first place, with an increase in value of £29,063 in 2020, equating to an increase of £79.41 per day.

Chart: Zoopla
Chart: Zoopla

Zoopla explained that with great transport links to London and royal connections, the historic market town has long been seen as a desirable place to live.

Other locations that feature in the top ten and are within a commuting distance to London include Winchester in Hampshire, St Albans and Bishops Stortford in Hertfordshire.

“All three locations are famed for their quality of life and have direct train links to London with a journey time of one hour or less,” the report noted.

Another favourite with commuters, the town of Altrincham near Manchester ranks in second place nationally. With an average property value of £536,144, Altrincham property owners have seen their house increasing in value by £23,772 in 2020, equating to £64.95 a day.

Coastal locations also featuring in the top ten include Penzance, the most westerly major town in Cornwall in third place, with the average property increasing its value by £23,437 in 2020 (£64.04 per day).

“The housing market has been one of the bright spots of the economy in this otherwise uncertain year. The data reflects an increased demand for additional indoor and outdoor space, and some rural locations have seen a rise in activity levels as those no longer constrained by a daily commute look for a different style of living,” aid Gráinne Gilmore, head of research at Zoopla.

“These factors, coupled with the stamp duty holiday, has led to one of the busiest Christmas housing markets in a decade, and has underpinned price rises of nearly 4% this year,” she added.

London

The total value of housing in the capital passed the £2 trillion mark this year, now standing at £2.03 trillion. The average London property increased in value by a substantial £19,609 in 2020, while the average value of a London home is now a hefty £658,195.

Average prices calculated by property type and region, modelled to reflect stock levels. Postal towns exclude locations with sample less than 20,000. Chart: Zoopla
Average prices calculated by property type and region, modelled to reflect stock levels. Postal towns exclude locations with sample less than 20,000. Chart: Zoopla

The biggest increases in London are found in the Royal Borough Borough of Kensington and Chelsea (£49,812) and Westminster (£47,882). The London Borough of Merton, which encompasses Wimbledon ranked in third place (£35,179), while the London Borough of Hammersmith and Fulham (£34,097), and the City of London (£30,839) make up the top five.

READ MORE: Top 10 most valuable areas of the UK property market outside London

“There is a strong indication that despite many homeowners reassessing their priorities and considering leaving the city, there is still a significant return on investment to be made for those who own homes in London,” Zoopla said.

WATCH: What do stamp duty cuts mean for buyers and house prices?