London house prices: average increases by 4.5% to £501,000

The average price of a house in London has once again moved above the half-million pound mark, according to the latest data released by the Office for National Statistics (ONS).

In its January 2021 index, the ONS said the average property price in the capital increased by 5.3% over the year - up from 4.5% in December 2020. At an average of £501,000, London’s house prices remain the most expensive of any UK region. 

According to Property Notify, the average price for a detached house in London was £978,289 in January 2021 - a 9.7% increase on the January 2020 figure of £892,166. A semi-detached was £640,224 (+10.4%), terraced was £545,947 (+9.6%) and a flat/maisonette was £422,557 (+1.4%).

For first-time buyers, they now need a deposit of £132,685, City A.M. reports. New research published by Halifax found that the average deposit size has increased by £20,000 since last year for people looking to get on the property ladder in the capital.

£17,000 annual rise for UK average

The average price for a house in the United Kingdom was £249,000 in January 2021 - this is £17,000 higher than in January last year. 

On a non-seasonally adjusted basis, the ONS said that average house prices in the UK decreased by 0.5% between December 2020 and January 2021, compared with an increase of 0.1% in the same period a year ago. Average UK house prices were unchanged between December 2020 and January 2021, following an increase of 1.0% in the previous month.

English average house prices remain the highest in the UK at £267,000. The average price increased by 7.5% over the year to January 2021, down from 8.0% in the year to December 2020.

In Wales price averages increased to £179,000 (9.6%), in Scotland to £164,000 (6.9%) and in Northern Ireland to £148,000 (5.3%). The North West was the English region which saw the highest annual growth in average house prices (12%), while the West Midlands saw the lowest (4.7%).