Data published by Nationwide Building Society showed that in December, housing prices rose by 10.4% per annum after an increase of 10% in November. As a result, house prices reached a record high (254,822 pounds). Economists had expected prices to rise by 10.2%.
On a monthly basis, house price growth accelerated to 1% from 0.9% in November. Economists had expected growth to slow to 0.5%.
Nationwide also reported that 2021 was the strongest calendar year for house price growth since 2006.
Commenting on the data, Nationwide chief economist Robert Gardner said: "The price of a typical home in the country has increased by 23,902 pounds since December 2020, recording the largest increase in history and reaching a record 254,822 pounds. Against the background of the latest growth, housing prices turned out to be 16% higher than before the pandemic."
"However, the housing market is likely to slow down in 2022, since the stamp duty holiday encouraged many to bring forward their house purchase in order to avoid additional tax. The spread of the Omicron strain may also put pressure on the housing market. Even if broader economic conditions remain resilient, rising interest rates will cause a slowdown in the housing market".