Halifax says average UK house price to rise by over £24,500 in 2021

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According to one index, house prices rose an average of more than £24,500 in 2021, the biggest annual cash increase since 2003.

Halifax said the value of typical UK property reached a new record high of £276,091 in December 2021.

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

But house price growth is expected to be very slow this year, the report said.

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

Russell Galli, managing director of Halifax, said: “UK home prices climbed again for the sixth straight month in December, rising 1.1%.

“The average price for a property is now £276,091, an increase of over £24,500 compared to December 2020, marking the strongest year-on-year cash increase since March 2003.

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

“In 2021 we saw the average home price reach new record highs on eight occasions, despite the UK being under lockdown for the first six months of the year.

“The lack of opportunities for people to spend while the restrictions were in place helped boost domestic cash reserves.

“This factor, along with the space race resulting from stamp duty holidays and housework, will encourage buyers to go ahead with home purchases planned for this year.

“The expansion of the government’s job and income support schemes also supported the labor market and may have given some families the confidence to move forward with purchases.

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