Share this @internewscast.com

House prices increased by more than £24,500 on average in 2021, with the value of a typical UK property hitting a new record high of £276,091 in December 2021, according to analysis from Halifax. 

Property prices hit new record highs eight times last year, according to its monthly index, despite the impacts of the coronavirus pandemic.

But house price growth is expected to slow considerably this year, the report added.

The average UK house price increased by 9.8% annually and by 1.1% month on month in December.

Russell Galley, managing director, Halifax, said: ‘UK house prices climbed again in December for the sixth month in a row, rising by 1.1%.

‘The average price for a property now stands at £276,091, an increase of more than £24,500 compared to December 2020, marking the strongest year-on-year cash rise since March 2003.

‘The housing market defied expectations in 2021, with quarterly growth reaching 3.5% in December, a level not seen since November 2006.

‘In 2021 we saw the average house price reach new record highs on eight occasions, despite the UK being subject to lockdown for much of the first six months of the year.

‘The lack of spending opportunities afforded to people while restrictions were in place helped boost household cash reserves.

‘This factor, alongside the stamp duty holiday and the race for space as a result of home-working, will have encouraged buyers to bring forward home purchases that may have been planned for this year.

‘The extension of the Government’s job and income support schemes also supported the labour market and may have given some households the confidence to proceed with purchases.

‘A lack of available homes for sale, and historically low mortgage rates, have also helped drive annual house price inflation to 9.8%, its highest level since July 2007.

‘Looking ahead, the prospect that interest rates may rise further this year to tackle rising inflation, and increasing pressures on household budgets, suggests house price growth will slow considerably.

‘Our expectation is that house prices will maintain their current strong levels but that growth relative to the last two years will be at a slower pace.

‘However, there are many variables which could push house prices either way, depending on how the pandemic continues to impact the economic environment.’

Ben Woolman, director at developer Woolbro Group, told MailOnline: ‘Today’s figures may be cause for celebration for those who already have a firm foot on the property ladder but, sadly, make for grim reading for hopeful first-time buyers.

‘Though the market is likely to cool over the next 12 months, tax rises and substantial increases in living costs are now firmly on the horizon. Such a fiscally bleak outlook means that many young people who were hoping to get onto the property ladder in 2022 are likely to face many more months, or even years, before they have saved up enough for a deposit on their first home. 

This four bedroom family home in Barnsley is available for £275,995, slightly below the national average

This four bedroom family home in Barnsley is available for £275,995, slightly below the national average

This four bedroom family home in Barnsley is available for £275,995, slightly below the national average

Three-bedroom house in Cotchett Village, Derby which is available from £275,950

Three-bedroom house in Cotchett Village, Derby which is available from £275,950

Three-bedroom house in Cotchett Village, Derby which is available from £275,950

‘Britain, quite frankly, is not building enough houses to keep up with ever-growing demand. With the government’s ambitious planning reform agenda now up in the air, the Housing Secretary must provide urgent clarity on how he plans to transform ‘Generation Rent’ into ‘Generation Buy’.’

Looking at annual house price growth across the UK, Wales remained the strongest performer, recording annual house price inflation of 14.5% in December.

The rate of increase in Wales was slightly lower than a 14.8% rise recorded in November.

Northern Ireland was also one of the strongest performing parts of the UK, with house price growth at 10.6%.

House prices in Scotland increased by 9.7% year on year.

In England, the North West was the strongest region, with house prices up by 11.8%.

London remained the weakest performing area for annual house price inflation, with a 2.1% increase.

Martin Beck, chief economic adviser to the EY Item Club said: ‘A fall in mortgage approvals in late 2021 to pre-pandemic levels suggests that the end of the stamp duty holiday in October has prompted a return to more normal levels of housing market activity and demand.

‘The Bank of England’s decision in December to raise bank rate will feed through into higher mortgage rates and is likely to be followed by further interest rate increases later this year.

‘Households’ spending power is being squeezed by rising inflation and faces further pressure in the spring from tax rises.’

Jan Crosby, head of infrastructure, building and construction at KPMG UK, said: ‘The price rises seen last year will continue to impede first-time buyers in particular.’

This three bedroom house in Keyworth, Nottingham is near the average UK house price and will cost you £276,000

This three bedroom house in Keyworth, Nottingham is near the average UK house price and will cost you £276,000

This three bedroom house in Keyworth, Nottingham is near the average UK house price and will cost you £276,000

This two bedroom cottage in Chippenham is slightly below the average price, available for £276,000

This two bedroom cottage in Chippenham is slightly below the average price, available for £276,000

This two bedroom cottage in Chippenham is slightly below the average price, available for £276,000

Nathan Emerson, chief executive of property professionals’ body Propertymark, said: ‘Our housing market report for November revealed a 12% increase in the average number of registered buyers, but the lowest number of homes on the market per branch ever recorded.

‘This indicates fierce competition for buyers as there continues to be a huge gap between supply and demand.

‘We anticipate that our next report will mirror this data and continue the same trend in December, as agents on the ground report an extremely busy month in comparison to previous years.’

Andrew Montlake, managing director of mortgage broker Coreco, said: ‘The past two years have radically transformed what people want from their homes and even though rates are rising they are still exceptionally low in historical terms. The market is also being propped up by a chronic lack of supply.’

Mark Harris, chief executive of broker SPF Private Clients, said: ‘Low mortgage rates have been one of the contributing factors to the housing boom and, although some lenders are starting to tweak mortgage rates upwards, pricing remains competitive.’

Guy Gittins, chief executive of estate agency Chestertons, said: ‘We predict the imbalance between supply and demand to remain, creating a continuously competitive market for house-hunters.’  

Source: Daily Mail

Share this @internewscast.com
You May Also Like

Bam Margera Missing After Vanishing AGAIN From Court-Ordered Rehab: Reports – Crime Online

Ex-“Jackass” star Bam Margera reportedly vanished from a Florida treatment center on…

At least 20 found dead in South Africa nightclub

The young people who died were reportedly attending a party to celebrate…

Decaying body of 3-year-old boy found in freezer; mother arrested

Police Chief James White told reporters that officers and members of Child…

Man charged with attempted murder after shooting leaves robbery victim’s father paralyzed

BY JENNIFER CABRERA GAINESVILLE, Fla. – Cedric Leon Cohens II, 20, was…

DLCC Wants Biden to Campaign for Democrats in State Legislative Races

Despite President Joe Biden’s job approval numbers being in the low 30s,…

Hillary Clinton on what Justice Clarence Thomas’ opinion could mean

Hillary Clinton on what Justice Clarence Thomas’ opinion could mean – CBS…

Jacksonville advocates fear LGBTQ community could face uncertain future when it comes to their rights

This comes after the Supreme Court’s decision to overturn Roe v. Wade.…

Wimbledon: Stacey Dooley and Kevin Clifton join Rochelle and Marvin Humes on day one

It’s of the highlights of the celebs’ summer season. And a starry…