The average price of a UK home rose by 10.4%* last year, making 2021 the strongest calendar year for house price growth since 2006*.
Property experts are saying the market is showing strong signs of recovery from challenges such as the pandemic and the Stamp Duty Holiday.
According to the Nationwide house price index, house prices in the UK are now 16% higher than before the pandemic struck in 2020, with the average home reaching record highs of £254,822**.
Mortgage approvals for house purchases are continuing to run above pre-pandemic levels, making 2021 the strongest year for mortgage lending since 2007. Meanwhile, the number of homes on the market has remained low throughout the year, resulting in an increased demand for property, specifically with first-time buyers.
59.1%** of people are looking to take their first step onto the property ladder, which has increased with the rise in mortgage approvals this year.
The market is expected to continue its upwards rise in 2022, after a surprising year in 2021. The market still has significant momentum and a change in housing preferences could continue to support market activity and house price growth.
The COVID pandemic has had a massive impact on homebuyer priorities, persuading people to move away from urban areas in search of more space.
Additionally, demand has remained strong despite challenges brought by 2021, such as the end of the Stamp Duty Holiday and the end of the furlough scheme, marking the biggest increase ever recorded in a single year in cash terms.
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*According to a study by Nationwide
**Estate Agent Today: ‘It’s a record’
*Property Data
