Property prices rose by 9.8% over the course of 2021 – amounting to £24,500 on average, Halifax’s house price index has found.
This is the steepest year-on-year cash rise since 2003, and brings typical prices to £276,091.
Quarterly growth stood at 3.5% in December, the highest increase since November 2006, while prices rose by 1.1% month-on-month.
Russell Galley, managing director, 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 that may have been 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.
“A lack of available homes for sale, and historically low mortgage rates, have also helped drive annual house price inflation to 9.8%, its highest level since July 2007.”
Wales sees steepest growth
Wales is the fastest growing region in the UK, with annual house price inflation of 14.5%, taking the average house price to £205,579.
In England, the North West was the strongest performing region (11.8%), followed by the South West (11%).
Northern Ireland also saw strong house price inflation, recording double-digit annual growth of 10.6%, bringing prices to £170,946.
House prices also continue to rise in Scotland, with the average property now up 9.7% year-on-year, with the average price of £192,988, the most expensive on record.
Despite registering a strong quarterly rise in prices (2.9%), up from 1.1% in November, London remains by far the weakest performing area for annual inflation (2.1%).
|Region||Average Price £||Annual Change %|
|Yorkshire and Humber||192,210||9.7|