UK average house prices increased 10.0 per cent over the year to November 2021, up from 9.8% in October 2021, official figures have revealed.
According to the Office for National Statistics house price index, the average UK house price was £271,000 in November. This was £25,000 higher than the same time the year prior.
Jamie Johnson, CEO of FJP Investment said the housing market seemed to defy gravity” last year, as prices maintained an upwards climb throughout the year.
He added: “The performance has been remarkable despite the seismic impact of the pandemic, which though highly disruptive, has actually sparked even higher demand across the property market.
“The picture might look a little different in 2022. Homebuyers’ ‘race for space’, combined with the shortage of available properties, have fuelled relentless levels of activity; however, while buyer demand remains strong, rising interest rates are looming and inflation keeps climbing, which could have a slight cooling effect on the market in the coming months.”
Director of Benham and Reeves, Marc von Grundherr, said it was “now abundantly clear that the sector is standing tall on its own two feet” in the wake of the stamp duty break.
A slight slow in pace is inevitably on the cards as the industry took a well earned break during the Christmas period, but we’ve seen strong signs already this year that this market momentum has carried on where it left off in 2021.”