House price growth soars in 2021

House prices in the UK soared 10% over the course of 2021, which is the fastest growth rate in 15 years.

New figures from Nationwide found that the average cost of a home in the UK was £254,822 in December – which is £24,000 more than the start of the year.

Despite the pandemic stalling the economy, the housing market has boomed over the past two years as people looked for more space and the government introduced the stamp duty holiday.

However, the boom may come to and end and the housing market is likely to slow in 2022.

“It appears likely that the housing market will slow next year, since the stamp duty holiday encouraged many to bring forward their house purchase in order to avoid additional tax,” said Robert Gardner, Nationwide’s chief economist.

“The Omicron variant could reinforce the slowdown if it leads to a weaker labour market. Even if wider economic conditions remain resilient, higher interest rates are likely to exert a cooling influence.”