The exact amount of price rise – a 10% increase last year – has been revealed.

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The exact amount of price rise – a 10% increase last year – has been revealed.

According to the latest Halifax House Price Index, house prices rose at their fastest rate since 2007.

What does the property market have in store for 2022?

The value of homes in the United Kingdom increased by £24,500 in a remarkable year for the property market, fueled by behavioural changes and the Government’s stamp duty holiday.

The increase is the largest annual cash boost since the financial crisis of 2008.

In 2021, the average UK home cost more than £250,000, ending at £275,091.

Despite the year beginning with a strict lockdown and coronavirus cases remaining high all year, Halifax recently released monthly figures showing that UK house prices increased by 9.8% in 2021.

House prices increased by 1.1 percent in December alone, marking the sixth month in a row of growth.

However, following a strong year in 2021, experts are concerned about what lies ahead for homeowners.

The government’s wildly popular stamp duty holiday, which ended in September, contributed to the buying boom.

A scarcity of housing stock also contributed to price increases, with developers hampered by lockdowns and global material shortages.

The rise in inflation – and how the Bank of England’s interest rates could make borrowing more difficult – is by far the biggest concern for estate agents and would-be buyers in 2022.

Prior to the first lockdown, the central bank lowered borrowing rates to a rock-bottom 0.1 percent in March 2020.

When the market reopened in the summer, however, potential buyers jumped at the chance to pay an all-time low interest rate on their loans.

All good things must come to an end, and the bank has raised interest rates to 0.25 percent, with more increases expected through 2022.

Inflation, which is currently at 4.6 percent, is already well above the Bank of England’s two percent target.

Furthermore, household budgets are being squeezed to unprecedented levels as a result of rising energy costs and a looming tax increase in April, leaving potential buyers wondering if now is a good time to buy.

The boom, according to Halifax Managing Director Russell Galley, is unlikely to last until 2022.

“Looking ahead, the possibility of higher interest rates this year to combat rising inflation and increasing pressures on household budgets,” he said.

“Brinkwire News in Condensed Form.”

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