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New high for house prices

Average price increases by £24,000 in a year – the biggest rise since 2003

Originally posted: 10th January, 2022

The average house price in the UK has hit a new record high

A new high for UK house prices as the average price increases by £24,000 in a year – the biggest rise since 2003, is reported by Halifax.

The average house price in the UK has hit a new record high of £276,091, according to the latest House Price Index from Halifax.

The UK property market had a busy year in 2021, with many people moving house to find more space. With high demand the lack of properties on the market meant that house prices increased for eight months of the year.

Housing market "defied" expectations

The Halifax’s latest House Price Index states that the housing market “defied” expectations last year.

“UK house prices climbed again in December for the sixth consecutive month in a row, up 1.1 per cent,” said Russell Galley, Halifax Managing Director.

“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 per cent in December, a level not seen since November 2006.”

He said average house prices rose on eight occasions during last year, despite the country being in a lockdown for the initial few months of the year.

He added: “The lack of spending opportunities afforded to people while restrictions were in place helped boost houseplant 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 they’d maybe planned for this year.

“The extension of the Government’s job and income support scheme 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 of 9.8 per cent, its highest level since July 2007.”

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