House prices jumped in November, official data showed on Wednesday, as growth picked up again following the end of the stamp duty holiday.
According to the Office for National Statistics, UK house prices increased by 10.0% in the year to November, up from 9.8% in October and in line with consensus.
On a non-seasonally adjusted basis, the House Price Index increased 1.2% between October and November, compared to a rise of 1.0% during the same period a year previously.
The average price of a house in England in November was £288,130, up 1.4% month-on-month. In Scotland it rose 1.0% to £182,755, but eased 0.7% in Wales to £199,877. In Northern Ireland, house prices increased by 10.7% over the year to the third quarter to £159, 109.
There were also disparities in price growth based on property type. Prices for detached homes jumped 13.9% year-on-year in November, but by just 5.6% for flats.
Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said: “This divergence largely reflects a continued shift in demand for outdoor space caused by the pandemic, and the adverse impact on the price of flats due to cladding-related issues.”
She continued: “House prices rose again in November, after dipping in October following the full reversal of the Stamp Duty Land Tax threshold back to £125,000 at the end of the third quarter.
“Growth, however, looks set to slow over the next 12 months. Admittedly, some households have accumulated savings during the pandemic, which they plan to put towards a home purchase. But affordability will become a bigger problem for many prospective home-buyers.”
Inflation has risen throughout the year, prompting the Bank of England to unexpectedly up the cost of borrowing in December.
Data released on Wednesday showed inflation reached 5.4% last month, its highest level in almost 30 years, as the cost of clothes, food and footwear rose.
The BoE currently expects the consumer price index to peak at 6% in April, although some analysts believe it could touch 7% following the expected spike in home energy costs when the price cap is lifted.
Data for the UK House Price Index is provided by HM Land Registry, Registers of Scotland, The Land & Property Services/Northern Ireland Statistics & Research Agency and the Valuation Office Agency.
