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Demand for homes still outstripping supply – for now

10 January 2022December 14th, 2022

Another day, another house price index record. The latest, from the Halifax, shows that typical house prices increased by over £24,500 in 2021, the largest annual boost since March 2003.

Wales remains the strongest performing location with annual rises of 14.5 percent, and Northern Ireland on 10.6 percent. Scotland was up 9.7 percent. 

In England, the North West was the strongest performing region (up 11.8 percent) followed by the South West. London continues to lag, up just 2.1 percent. 

“UK house prices climbed again in December for the sixth consecutive month in a row, up 1.1 percent” explains Russell Galley, the managing director of the Halifax. 

He continues: “In 2021 we saw the average house price reach new record highs on eight occasions, despite the UK being subject to a ‘lockdown’ for much of the first six months of the year.

“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 they’d maybe 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.