- 10th January 2022
- Posted by: DMM
- Category: Property Market Reports
According to the Halifax House Price Index, house prices in 2021 went up by 9.8% bringing an average UK home price to £276,091. This is a rise of over £24,500 in 2021 and, according to the Halifax, the largest annual cash rise since March 2003.
However, their projection for property price growth in 2022 is expected to show a slowdown. Russell Galley, Managing Director of Halifax, said:
“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 homeworking, 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 schemes also supported the labour market and may have given some households the confidence to proceed with purchases.”
“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.”
“…there are many variables which could push house prices either way, depending on how the pandemic continues to impact the economic environment”
Regional House Prices in 2021
House prices in 2021 varied, of course, across the regions with Wales being the best performing according to the Halifax. Wales has the best house price inflation in the UK with prices up 14.5%, taking average prices to £205,579. Northern Ireland had strong growth too with prices up 10.6% and an average property price at £170,946.
Scotland average house prices in 2021 went up by 9.7% and in England the Northwest did best at 11.8%, followed by the South West. London, however, shows the weakest growth with annual inflation at 2.1%.
You can read the whole Halifax House Price Index here.