UK average house price growth reached a four-year high in November, as per data published by the Office for National Statistics (ONS).

Average house prices in Britain rose 7.6% in the year to November 2020, the highest level since June 2016, and up from October’s reading of 5.9%, as per the ONS official house price index.

The average price across the country is now £250,000, whilst in the capital, prices surpassed £500,000 for the first time, reports the FT.

According to the ONS, price variations at the start of last year could reflect the unusual conditions in the property market at the time.

Pent-up demand following the first coronavirus lockdown, as well as the government’s stamp duty holiday both helped to push prices up.

The Bank of England’s Money and Credit November 2020 report showed the number of mortgage approvals further increase in November to 105,000, the highest since August 2007, says Property Reporter.

The ONS also said that the pandemic may have led house buyers to reconsider their housing preferences: "In our UK HPI data, we have seen the average price of detached properties increase by 8.5% in the year to November, in comparison with flats and maisonettes increasing by 5.4% over the same period."

Anna Clare Harper, chief executive of asset manager SPI Capital says of the latest figures: "The UK HPI data for November shows a more complete picture than other house price indices. This is important because news of house price growth both reflects and also influences buying decisions.

"In 2020, property decisions were underpinned by an understandable fear of missing out: on the temporary Stamp Duty reduction, on the chance to improve living conditions, and on future house price gains.”

Howard Archer, chief economic adviser to the EY Item Club added: “The housing market is likely to come under mounting near-term pressure as the economy continues to be affected by major restrictions in most areas, while there may well still be a significant rise in unemployment.”