House prices jumped 9.8% in 2021 but slump forecasted for year ahead

House prices across the UK jumped by 9.8% last year, says the high street bank and buildings society Halifax.

Monthly figures released today by the lender show that the prices soared to their sharpest since July 2007 as interest rates hit record lows, demand for larger homes increase and stamp duty tax breaks all pushed prices up.

Halifax have said that the market could cool this year however, as living costs take a hammer to household budgets.

The average property price has hits a record high of £276,091.

Halifax’s managing director Russell Galley said: “UK house prices climbed again in December for the sixth month in a row, rising by 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.”

“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,” he went on.