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House prices rose £16K in 2021, but growth to slow next year

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After a seasonal lull, the market is expected to pick up in the first quarter of next year, but price rises will be more muted
House prices rose £16K in 2021, but growth to slow next year

The average price of a UK home jumped £16,000 in 2021 to £240,800, according to Zoopla.

The property portal said that homeowners saw thousands of pounds added to the value of their homes this year, with the entire UK housing stock now estimated to be worth £9.5trn – up £670bn in the last 12 months.

More than half of UK homes have risen in value by more than £15,000, while 3.5 million homeowners have seen a £30,000 to £44,999 increase in their property’s value.

And 3.1 million homes have soared by more than £45,000.

Zoopla also found that the increases were spread across the country, with prices in nearly every region having risen by more this year than in 2019 and 2020 combined.

What about next year?

House prices will also rise in 2022, predicts Zoopla, but at a slower rate.

It noted that the property market is ‘currently in a seasonal dip’, as people put buying plans on hold over Christmas.

But Zoopla said it expects a ‘massive bounce back in activity’ after the festive season. More properties are expected to come on to the market in the first quarter of 2021, easing the imbalance between supply and demand.

Grainne Gilmore, head of research at Zoopla, said: “This year has been a record year for the market.

“The stamp duty holiday and the pandemic-led ‘search for space’ has resulted in the highest number of sales since before the financial crisis, with 1.5m transactions.”

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