House prices rose to record highs last year, boosted by the stamp duty holiday and extra cash reserves accumulated by households during lockdowns.
The average price of a property in the UK reached £276,091 in 2021, according figures published by Halifax, one of Britain’s biggest mortgage lenders. 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 9.8 per cent 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 per cent compared with 2020 to reach an average of £205,579. House price growth was about 10 per cent in Northern Ireland and Scotland. The northwest had the fastest growth across England, with prices 11.8 per cent higher at the end of 2021 than in the previous year.