The average UK house price climbed by 10.8% over the year to December 2021, the latest UK House Price Index published by the Office for National Statistics (ONS) has revealed.

This figure is up from the 10.7% annual growth reported by the ONS for November.

Average house prices increased over the year by 10.7% in England to £293,000, 13.0% in Wales to £205,000, 11.2% in Scotland to £180,000, and by 10.7% in Northern Ireland to £159,000. London continued to be the region with the lowest annual rate of growth at 5.5%.

These figures left the average UK house price standing at £275,000 in December 2021, a level £27,000 higher than the same month a year earlier, the ONS confirmed.

Commenting on the data, Trussle head of mortgages, Miles Robinson, said: “While continued house price growth is positive news, many homeowners are concerned about their finances, as soaring inflation and the cost of energy are putting households under extreme pressure.

“In addition, measures taken to tackle inflation could also be adversely impacting homeowners, with the Bank of England’s further interest rate rise potentially adding up to £331.56 onto mortgage products annually.
 
“Now is a good time for homeowners to review their outgoings and explore all their options.”

Legal & General Mortgage Club head of broker and propositions, Clare Beardmore, added: “The past two years have dramatically changed what people want from their homes and these newfound preferences are still supporting high levels of transaction activity.

“Price growth remains underpinned by a chronic lack of supply, creating a fiercely competitive market for house hunters.
 
“These themes are likely to continue to dominate the market in 2022. While tax rises and rising inflation have begun to squeeze households’ spending power, the market has shown over the last few years that it can remain resilient, even in the face of unexpected headwinds.”

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