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Halifax publishes final house price data for 2021, reporting record high
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Halifax’s final House Price Index for 2021 shows house prices were up 9.8% last year.
The report also states that the average price of a UK property hit a record high of £276,091 in December.
Halifax expects house price growth to slow in 2022.
Russell Galley, Managing Director of Halifax, comments within the report: “UK house prices climbed again in December for the sixth consecutive month in a row, up 1.1%. 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.”
Iain McKenzie, CEO of The Guild of Property Professionals, comments: “After an incredible year, the average UK property costs a record-breaking £275,000, with the last six months of 2021 showing unbroken growth.
“The average home rose £24,000 in a year – the largest annual cash rise since 2003, flying in the face of the economic uncertainty faced by many prospective buyers and the scaling down of government incentives.
“The housing market starts 2022 in a very strong position. Valuation requests from homeowners are a fifth higher than the year before, mortgage approvals are the highest they’ve been for years, and the pandemic appears to be on the wane.
“Further interest rate rises are likely this year, but while demand outstrips housing, we expect that prices will continue to rise this year, albeit at a much slower pace than we saw in 2021.”
Walid Koudmani, market analyst at financial brokerage XTB, comments: “Today’s (7th January 2022) Halifax HPI data showed an increase in house price of 9.8% in 2021 and continues to show the ongoing trend the Bank of England has been striving to contain by adjusting its policy.
“While a lack of available homes for sale and historically low mortgage rates have helped drive annual house price inflation to its highest level since July 2007, today’s report indicated a slight slowdown in price growth which could bring some optimism as markets remain concerned about more aggressive measures taken by central banks to contain inflation.”
