House prices hit record high of £276k as slower growth forecast for 2022
House prices increased by more than £24,500 last year, the largest annual cash rise since March 2003.
The average UK property price reached a new record high of £276,091 in 2021, rising 9.8 per cent, according to Halifax’s House Price Index.
Once more, London was the weakest performing region for annual inflation by long way (2.1 per cent), although it did mark a strong quarterly rise in prices (2.9 per cent).
The North West was the strongest performing region in England (11.8 per cent), followed by the South West.
Growth is expected at a slower pace in 2022, following a frenzy in activity related to the end of the stamp duty holiday last year.
Russell Galley, Halifax’s managing director, said: “Looking ahead, the prospect that interest rates may rise further this year to tackle rising inflation and increasing pressures on household budgets suggest 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.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Buyers are clearly still emerging following their short hibernation to carry on where they left off, quickly snapping up new properties which come onto the market. Most are choosing to forget worries about rising inflation, interest rates and taxes to say nothing of Omicron.
“However, lack of stock is reducing the number of transactions and supporting prices.Market appraisals and new instructions are improving but not quick enough yet.”