The Covid-19 pandemic has had a drastic effect on house prices, with detached homes seeing an astounding £100k surge in value.

When the Covid pandemic hit, Welsh homes saw the most substantial price growth. Detached homes were particularly in demand and experienced a notable spike in prices.

Halifax, a top mortgage lender, has recently published its data showcasing the evolution of the property market from before to after the lockdown in 2020.

At the onset of the pandemic, the property market was one of many industries to experience a complete shutdown. However, as restrictions began to relax in May 2020, and boosted by the stamp duty holiday incentive scheme - demand for property rapidly skyrocketed!

Halifax reported a 20% growth in the period from January 2020 to December 2022, amounting to an increase of £48,620 - far higher than their previously observed 7.8%, or £17,158 rise between January 2017 and December 2019 during pre-pandemic times.

Kim Kinnaird, Director of Mortgages for Halifax, expressed that: “The pandemic transformed the shape of the UK property market, and while some of those effects have faded over time, it’s important we don’t lose sight of the huge step change seen in average house prices.

“Heightened demand created a much higher entry point for bigger properties right across the country, and that impact is still being felt today by both buyers and sellers, despite the market starting to slow overall.

“Taking detached houses as an example, average prices remain some 25% higher than at the start of 2020. Even if those values were to fall by 10%, they would still be around £50,000 more expensive than before the pandemic.”
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Which house prices increased the most as a result of the pandemic?

In the period from 2020 to now, Wales has seen an extraordinary rate of house price growth - outstripping any other UK region or nation by an impressive margin. Halifax reports that prices in this area have risen by a total of £49,227 - equivalent to 29.3% - over the last three years alone!

The South East of England witnessed the most pronounced growth in cash terms, an increase of 21.3%, bringing the average house price from £325,448 to a staggering £394,672 - a difference of £69,224

Prior to the pandemic, detached property prices were ‘subdued’ according to Halifax, increasing at a rate of 1.7%, in comparison with flats that witnessed a growth of 4.1%.

Following the start of the pandemic, a strong appetite for dwellings with more square footage emerged. This trend was aptly named 'the race for space', and by early 2021 had propelled annual growth in detached homes to 2%.

Investment in detached properties across five UK regions - Eastern England, the South East, South West, London and the West Midlands - has soared by a whopping £100,000+ cash.