House prices grew at the fastest pace in 15 years in 2021. A stamp duty holiday which came to an end last year, helped to fuel around 1.5 million house purchases across the UK during the annum, the highest number since before the global financial crisis.

House Prices

Prices rose at an annual rate on 10.4% in December, making the calendar year performance the strongest since 2006, according to data from the Nationwide Building Society.

The price of a typical UK home rose to a record high of £254,822 up £23,902 over the year. 

Although experts expect the housing market to level out in 2022 (supply and demand), house prices are more difficult to predict as the demand will remain strong.

Housing Market

The UK saw its highest number of house purchases since before the financial crisis; fuelled by a number of reasons including the stamp duty holiday and the COVID-19 pandemic meaning there are increased flexible working opportunities prompting people to relocate.

According to Trade Association UK Finance, 2021 was the strongest year for mortgage lending and completed home sales since 2007.

Experts predict that the market is likely to return closer to normal in 2022.

Although stock for sale reached new record low, valuation requests from homeowners are 19% up on this time a year ago, suggesting more people have made a New Year resolution to make a move.

November 2021 showed buyer numbers were up by 41% suggesting a strong buyer demand carrying forward into 2022.