House prices hit record high after 10% rise

House prices reached record highs last year, after the stamp duty holiday and extra cash reserves accumulated by households during lockdowns helped to boost prices by 10%. The average UK property price reached £276,091 in 2021, according to figures published by Halifax. House prices increased by more than £24,500 last year, which is the biggest annual rise in cash terms since March 2003. A lack of homes available for sale and historically low mortgage rates have also contributed to the annual increase in prices. It is the fastest rate of growth since July 2007. The rise in prices is expected to slow in 2022 as the rising cost of living eats into households’ disposable income. Wales was the strongest performing UK nation, with prices up by 14.5% compared with 2020 to reach an average of £205,579. House price growth was about 10% in Northern Ireland and Scotland. The northwest had the fastest growth across England, with prices 11.8% higher at the end of 2021 than in the previous year. But Halifax expects the boom to lose steam. Managing director Russell Galley said: "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". 

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