According to the December Office for National Statistics (ONS) house price index, UK property prices increased dramatically in 2020 as the pandemic-induced Stamp Duty holiday and the nation's need to live and work at home kicked-in.

Lee Pickett, a housing sector specialist and real estate partner at global legal business, DWF, stated when the December ONS figures were released in February: "The UK's annual house price growth is at the highest level since late 2014, with today's data showing an increase of 8.5% over the year to December 2020. This means the average home is now £252,000, a staggering £20,000 more than in December 2019.”

The North West region of England experienced the largest growth in prices, up 11.2%, while London saw growth of just 3.5%.

Lee continued, "House prices ended the year on a high and we expect that this will continue into 2021, not least until the Stamp Duty holiday (in place for England and Northern Ireland) remains in operation and possibly thereafter, as home buyers' preferences have been greatly influenced by the pandemic.”

"The message from the UK Government to stay at home has meant that homeowners are spending a considerable amount of time in their homes and this understandably has led to a desire to ensure their property suits their new needs. Buyers are seeking homes not only to live in now, but for many, they will need a home to work in too.”

While the increase in prices may be good news for those already on the property ladder, the ONS figures will make the prospects for first time buyers even more bleak. "Affordability for first time buyers remains a serious issue, and with house prices now peaking at £252,000, the doorway to home ownership may remain closed for some time for many,” said Lee.