The latest figures show that property prices increased by 10% annually from November 2021 to December 2021.

According to the Office for National Statistics, this was a modest increase in inflation relative to October when prices rose 9.8 percentage points.

The average house price was £271,000 in November 2021, which is £25,000 higher than the same time last year.

Climbing: The average UK house price increased by £25,000 in the year to November 2021

Climbing: The average UK house price increased by £25,000 in the year to November 2021

These figures show that prices for houses continued to rise even though the September 2021 stamp duty holiday was over.

The tax break, which lowered home buyers’ bills by up to £15,000, contributed to rapidly rising prices after it was introduced in July 2020.

This was despite the cost of a home increasing by £10,000 more than the maximum tax break.  

HMRC reported that November saw an increase in the number of residential transactions, up nearly 25% compared to October.

However, this was 16.4% less than what it was in November 2020.

It is possible that October’s slight dip after the expiration of stamp duty holidays may have been temporary.

Rise: The rate of house price growth ticked up in November compared to October

In November, the rate of price rise in houses was slightly higher than it was in October.

The average UK house price has increased dramatically since the pandemic started

Since the pandemic began, the UK’s average home price has gone up dramatically

Phillip Stevens director, Richmond estate agency Antony Roberts said that it was “business as usual” in November, as prices for property rose after the October dip. 

“There’s plenty to show that buyer demand continues strong, particularly for houses. With very limited stock, it is a sellers market.

Experts say that inflationary pressures and rising living expenses could cause a slowdown in housing markets in 2022.

It all depends on whether the Bank of England increases its base rate. This would increase the mortgage cost.

Mark Harris is the CEO of SPF Private Clients Mortgage Brokers. He stated that there was further speculation that Bank of England would raise interest rates to 0.5% in February to offset rising inflation. However, it is still unclear what effect this might have on buyer trust.

“Squeezed affordability could be an obstacle, especially for first-time buyers. This would keep them from climbing up the ladder.

Looking at the different countries of the UK, house prices increased 9.8 per cent over the year in England to reach an average of £288,000.

In Wales they grew by 12.1% per cent to £200,000, in Scotland by 11.4 per cent to £183,000 and in Northern Ireland by 10.7 per cent to £159,000.

South West saw the greatest annual increase in house prices, rising 12.9 percent from October 2021. This is an increase of 10.8 percent from October 2021.

London had the lowest average annual price increase, at 5.1%, compared to 6.7% in October 2021.

Despite being the region with the lowest annual growth, London’s average house prices remain the most expensive of any region in the UK at an average of £520,000.

Locations: Regionally, the South West saw the highest house price increases at 12.9%

Localities: The South West experienced the largest house price rises at 12.9% 

The North East continued to have the lowest average house price at £149,000, but prices still increased 8.7 per cent in the year to November.

A further factor that continues to push up prices is the low number of available homes compared to those interested buyers.

Chairman of Jackson-Stops estate agent Jackson Leeming said that the last year was an extraordinary year in the real estate market. Prices and demand exceeded expectations due to the January pandemic. 

Although we have seen an improvement in house prices over October, they still indicate a shortage of housing supply. This is affecting demand levels for the year through November 2021.

“It is obvious that this imbalance in stock and demand will continue underpin housing activity for the next months. 

“This is evident in what we are witnessing across our branches. The complex and ongoing changes that have occurred to the nation’s lifestyle aspirations and working patterns has only raised the value Britons put on their home.

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