UK house prices are continuing to climb, despite a roller-coaster year in 2020. The main driver of this upward pressure on pricing is a continued rise in demand. Buyer demand in the first two weeks of the year was 13% higher than the start of 2020 (and that was a very busy time in the market). At the same time, the new lockdown enforced after Christmas means that some sellers are pressing pause on their sale. This means that new supply of homes listed for sale is down 12% year-on-year. We expect these homes will come to market once COVID-19 case numbers start to decline, and lockdowns begin to ease, but in the meantime this imbalance is putting upward pressure on prices.