New research has found that UK house prices have risen by 20.4% (£48,620) between January 2020 and December 2022, compared to just 7.8% over the previous three years.
The data from the Halifax House Price Index shows that Wales recorded the strongest growth, up 29.3% from £168,101 to £217,328.
The study also found that the average price of larger homes grew at almost twice the rate of smaller properties.
Detached houses saw the largest price increase of 25.9% or £93,345, with Wales seeing the strongest growth of 33.8% or £86,675.
Five UK regions saw the average price of a detached property rise by over £100,000. In contrast, demand for smaller properties in urban areas fell during the pandemic, with the average price of a flat increasing by just 3.8% in London, compared to 23.5% in the North West of England.
Semi-detached and terraced houses saw increases of 23.1% (£55,361) and 21.1% (£38,743) respectively over the last three years, with the South West and Wales seeing the strongest growth in semi-detached and terraced homes respectively.
Kim Kinnaird, Mortgages Director, Halifax, said: “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.”
