House prices have risen 10% in a year, but the boom is expected to come to an end.

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In a year, house prices have risen 10%, but the boom is expected to come to an end.

HOUSE PRICES INCREASED BY MORE THAN £24,500 LAST YEAR, but experts predict the boom will come to an end due to financial strains on households.

According to Halifax bank’s monthly index, property prices defied Covid eight times in 2021, with a typical asking price of £276,091 in December.

In December, the average UK house price increased by 9.8% year on year and 1.1 percent month on month.

Rising interest rates and the cost of living, on the other hand, are expected to stifle that growth.

The £24,500 increase over December 2020, according to Halifax managing director Russell Galley, makes 2021 the strongest year-on-year cash increase since March 2003.

“The lack of spending opportunities during the restrictions helped boost household cash reserves,” he said.

“This factor, combined with the stamp duty holiday and the race for space as a result of home-working, will have enticed buyers to move forward with home purchases that were planned for this year.”

Mr Galley believes that increased government job and income support may have prompted more home purchases.

He also pointed out that a lack of available homes for sale and historically low mortgage rates contributed to annual house price inflation reaching 9.8%, the highest level since July 2007.

“Looking ahead, the prospect of further interest rate hikes this year to combat rising inflation and increasing pressures on household budgets suggests house price growth will slow significantly,” he warned.

“We expect house prices to remain strong, but growth will be slower than in the previous two years,” says the report.

Meanwhile, experts have warned that rising prices will make it difficult for first-time buyers to get a mortgage.

“House prices continue to outpace wage growth, making it difficult for would-be first-time buyers to raise a deposit – the most difficult aspect of getting on the property ladder,” said Interactive Investor’s Myron Jobson.

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“Mortgage rates are likely to rise this year, increasing the unaffordability of home ownership even more.”

With annual house price inflation of 14.5 percent in December, Wales remained the fastest-growing country.

Northern Ireland was also one of the most resilient parts of the United Kingdom.

There was a 10.6% increase in house prices, and prices in Scotland increased by 9.7% year on year.

The northwestern United States.

“Brinkwire News in Condensed Form.”

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