House prices continued to rise sharply in November, pushing annual house price inflation up to 5.8 per cent in England and Wales, according to the latest market data.

The e.surv Chartered Surveyors house price index showed the market was robust, despite recent lockdowns in both regions. Its index showed house prices were on average 1 per cent higher in November, when compared to October. This put the average property price in England and Wales at £319,816.

Its figures show the average rise in property prices excluding London was 6.1 per cent across England and Wales. 

Regional breakdowns show that property prices in the South West increased at the fastest rate, with annual inflation of 6.4 per cent (and an monthly increase of 1.5 per cent). This was followed by the South East, which saw a 5.9 per cent increase, and the North West with a 5.8 per cent annual increase.

Houses in the East of England increased in value by 5 per cent over the year, while there was a 4.8 per cent increase in Greater London.

The increase in house prices was slowest in the North East, with property increasing by just 3.1 per cent year on year. 

E.surv director Richard Sexton says: “While we are seeing the rapid growth in house prices begin to slow month on month, prices are still up significantly year on year.”

He says these increases continue to be fuelled by the stamp duty tax break, which will continue until 31 March 2021.

He adds:“The second lockdown in England appears to have had little impact on prices through November. The industry has continued to adapt and make use of tech, to support homebuyers in a sensible and safe manner.”

Acadata senior analyst John Tindale adds that house price inflation was also being driven by the so-called “race for space”.

He said “Estate agents have reported the lockdown created a widespread re-appraisal of lifestyle, not least with the possibility of working from home becoming a potential permanent feature for some. There has been an appetite for home with more space, including gardens and less crowded locations.” 

Low interest rates are also supporting the market he said.