UK house prices reach new high in 2021, growth expected to slow

House prices in Britain climbed in December 2021 for the sixth consecutive month, up 1.1 percent, with the average reaching a record high of 276,091 pounds (about 373,636 U.S. dollars), while the price growth is expected to slow in 2022, a report said Friday.

Compared to December 2020, the average price for a British property saw an increase of more than 24,500 pounds (about 33,156 dollars), marking the strongest year-on-year cash rise since March 2003, according to the Halifax House Price Index, a key barometer of Britain's house prices based on Halifax mortgage transaction data.

"The lack of spending opportunities afforded to people while restrictions were in place helped boost household cash reserves," said Russell Galley, managing director at Halifax. "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 (British) government's job and income support schemes also supported the labour market and may have given some households the confidence to proceed with purchases," Galley added.

For the whole year of 2021, Britain's house prices went up 9.8 percent.

"Looking ahead, the prospect that interest rates may rise further this year to tackle rising inflation and increasing pressures on household budgets suggest house price growth will slow considerably," Galley said.