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Around one million UK houses have risen in value by more than 50 per cent since 2020, according to new research.
House prices have increased by a fifth (20 per cent) on average since 2020, according to Zoopla.
The property platform attributed house price growth to pandemic and lifestyle-led changes in buyer requirements that have prompted interest in “previously overlooked areas” that offered excellent value for money.
It follows news from Rightmove that the number of homes priced at £1m or above has doubled since the start of the pandemic.
Zoopla added that “substantial rental growth” in Northern and Welsh cities has encouraged first-time buyers to buy properties as a “cheaper alternative” to renting, adding that these markets continued to boom during the spike in mortgage rates.
CEO of Propertymark, Nathan Emerson, said that the rise in house prices was “positive, especially when considering the current condition of the economy.”
“However, for first-time buyers, this presents the potential for further restrictions such as increased costs, affordability challenges and greater competition from other buyers, which could drive up prices even further.”
Emerson added that even with mortgage providers introducing more competitive mortgage deals – and lower deposits posited by Reeves – more help for first-time buyers “is needed”.
Richard Donnell, executive director at Zoopla, said: “Our latest analysis clearly shows there is no single housing market and that house price trends vary widely across the UK.
“One million UK homes have seen their value increase by 50 per cent or more over the last five years as higher mortgage rates and rising rents encourage home buyers to seek out value for money in localised markets across northern England and Wales.
“Home value growth has been weaker across southern England and particularly in London. A combination of high prices and higher mortgage rates has reduced buying power, and this has been reflected in flat prices and modest price falls in inner London.”
Zoopla’s analysis compared current home value estimates published on the website with values in June 2020.
The main figures included the whole of the UK, while sub-national analysis excluded Northern Ireland.