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Halifax House Price Index December 2021

  • UK house prices were up 9.8% annually in December, meaning house prices rose at a faster rate in 2021 than in any calendar year since 2004.
  • House prices reached another record high, averaging £276,091 over the month. 
  • By means of comparison, Nationwide reported that house prices accelerated by 10.4% in December.

Halifax house price index, year-on-year

Source: Halifax, IHS Markit

Key trends

  • The housing market defied expectations in 2021, with the average house price reaching new record highs on eight occasions, despite the UK being subject to lockdown and Covid-19 restrictions for the first half of the year. In cash terms, that was a £24,000 rise in the cost of the typical home over the course of 2021. 
  • The mortgage lender said growth was underpinned by the stamp duty holiday and demand for more space from buyers during lockdown. 
  • A lack of available homes for sale, and historically low mortgage rates also helped drive house price inflation.


  • The pace of activity is expected to slow over 2022, as rising interest rates and inflationary pressures squeeze household budgets. 
  • Strutt & Parker forecasts UK house prices to grow by up to 7% in 2022, with a downside risk of +2%. While price growth is likely to remain positive, these figures indicate the pace of growth will moderate as market activity settles following a buoyant period over the past two years. 
  • From an economic perspective, there are many variables which could push house prices either way, with the labour market’s continued resilience offering valuable upside support.

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