The average house price has risen by £24k in a year, the highest increase since 2003.
According to Halifax’s latest House Price Index, average UK house prices have reached a new high of £276,091.
Last year was a busy year for the property market, with many Britons moving home in search of more space.
Despite the high demand, the lack of available properties on the market resulted in an increase in house prices for eight months in 2021.
The housing market “defied” expectations last year, according to Halifax’s latest House Price Index.
“UK house prices rose for the sixth consecutive month in December, up 1.1 percent,” said Russell Galley, Managing Director of Halifax.
“The average property price now stands at £276,091, up more than £24,500 from December 2020, marking the highest year-on-year cash increase since March 2003.”
“In 2021, the housing market defied expectations, with quarterly growth of 3.5 percent in December, the highest level since November 2006.”
Despite the UK being in lockdown for the first few months of the year, average house prices rose eight times last year, according to the expert.
“The lack of spending opportunities available to people while restrictions were in place helped boost houseplant cash reserves,” Mr Galley continued.
“This factor, combined with the Stamp Duty holiday and the race for space as a result of home working, will have prompted buyers to move forward with home purchases they had planned for this year.”
“The government’s job and income support programs were extended, which helped the labor market and may have given some households the confidence to buy.”
“A shortage of available homes for sale, as well as historically low mortgage rates, have contributed to annual house price inflation reaching 9.8%, the highest level since July 2007.”
House price growth may slow significantly in 2022, according to Mr Galley.
This is due to a variety of factors, including the need to combat rising inflation.
“Our expectation is that house prices will maintain their current strong levels, but that growth will be slower than in the previous two years,” the expert said.
“However, depending on how the pandemic continues to impact the economic environment, there are many variables that could push house prices either way.”
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