The house price boom of 2020 shows signs of slowing in 2021

Last year’s big rises in UK house prices looks to be running out of steam, reports Nicole Garcia Merida – 2021 could see a very different picture.

New houses under construction
New buyer enquiries fell in January
(Image credit: © Nathan Stirk/Getty Images)

One big surprise of 2020 was that house prices in the UK (and most other parts of the world) surged higher during the year, despite the pandemic. Yet, as 2021 begins, with at least some hope of an end to the pandemic and its associated disruption, it seems that the housing market is slowing somewhat.

According to Halifax’s House Price Index, the average property price slipped by 0.3% from December to January, the biggest monthly fall since April last year. Prices are still around £13,000 higher than they were a year ago, and industry figures for agreed sales are still well above pre-pandemic levels, but “there are some early signs that the upturn in the housing market could be running out of steam”, says Russell Galley, managing director at Halifax. ”New instructions to sell have decreased noticeably, and total stock held by estate agents has risen to its highest level since before the EU referendum in 2016”.

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.