Average house prices have increased by 51% over the past 10 years, according to e.surv’s Chartered Surveyors House Price Index.
On a monthly basis, house prices across England and Wales increased by 1.4% between November and December 2020.
Throughout 2020, house prices rose by 7.8% despite the added complications of COVID-19.
This is the highest annual increase since 2016, however the majority of growth took place in the last six months of the year as pent-up demand was released by more relaxed coronavirus restrictions.
As a result, the average house price in England and Wales was £326,762 at the end of December.
Richard Sexton, director at e.surv, said: “During 2020, large numbers of people across the UK were confined to their houses for long periods of time, as we battled the pandemic.
“Over the year many people were forced to adapt their homes to function as offices, schools and nurseries.
“This increased emphasis on where we live and where we spend so much of our lives undoubtedly helped focus many people’s minds on the property market.
“This increased focus was reflected in the types of property that were most sought after in 2020.
“Larger, typically more expensive, properties with more outdoor space became even more highly prized, which in turn increased the price of the average transaction.
“It’s important to remember that the pandemic which produced such an unusual year is very much still with us.
“Everyone involved in the property market must continue to operate in a responsible manner, making use of technology where possible to support the industry while putting safety first.”