According to the report from the UK Government, UK house prices increased by 2.5% in the year to August 2020, up from 2.1% in July 2020. Economists had expected a 2.4% increase. On a non-seasonally adjusted basis, average house prices in the UK increased by 0.7% between July 2020 and August 2020, compared with a rise of 0.3% during the same period a year earlier (July 2019 and August 2019).

House price growth was strongest in England where prices increased by 2.8% in the year to August 2020. The highest annual growth within the English regions was in the East Midlands where average house prices grew by 3.6%. The lowest annual growth was in the North East, where prices increased by 0.2% in the year to August 2020.

The Royal Institution of Chartered Surveyors’ (RICS) August 2020 UK Residential Market Survey results reveal that the sales market continues to show strong momentum, even if the longer term view remains cautious. National house price growth indicator hits a four-year high and most respondents foresee demand increasing for homes with gardens over the next two years.