House prices up by almost 12% in the North West, according to Halifax

The North West region has seen the biggest jump in house prices in England 2021, according to an index.

The average price to buy a house in the region in December 2021 was £211,954, which is an annual rise of 11.8%.

Overall, house prices in the UK increased by more than £24,500 on average in 2021, marking the largest annual cash rise since 2003, according to Halifax.

Property prices hit new record highs eight times last year, according to its monthly index, despite the impacts of the coronavirus pandemic.

But house price growth is expected to slow considerably this year, the report added.

Average UK house price rose by more than £24,500 in 2021 says Halifax. Credit: PA

How do house prices across the UK compare to the North West? Here's the average house prices across the UK in December 2021 followed by the annual increase:

  • East Midlands, £225,106, 9.1%

  • Eastern England, £319,447, 8.1%

  • London, £525,351, 2.1%

  • North East, £159,694, 8.3%

  • North West, £211,954, 11.8%

  • Northern Ireland, £170,946, 10.6%

  • Scotland, £192,988, 9.7%

  • South East, £374,454, 8.1%

  • South West, £287,774, 11.0%

  • Wales, £205,579, 14.5%

  • West Midlands, £234,263, 8.8%

  • Yorkshire and the Humber, £192,210, 9.7%

The prospect that interest rates may rise further to tackle rising inflation suggests house price growth will slow considerably. Credit: PA

Russell Galley, managing director, Halifax, said: "UK house prices climbed again in December for the sixth month in a row, rising by 1.1%.

"The average price for a property now stands at £276,091, an increase of more than £24,500 compared to December 2020, marking the strongest year-on-year cash rise since March 2003.

"The housing market defied expectations in 2021, with quarterly growth reaching 3.5% in December, a level not seen since November 2006.

"In 2021 we saw the average house price reach new record highs on eight occasions, despite the UK being subject to lockdown for much of the first six months of the year.

"The lack of spending opportunities afforded to people while restrictions were in place helped boost household cash reserves.

"This factor, alongside the stamp duty holiday and the race for space as a result of home-working, will have encouraged buyers to bring forward home purchases that may have been planned for this year.

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"The extension of the Government's job and income support schemes also supported the labour market and may have given some households the confidence to proceed with purchases.

"A lack of available homes for sale, and historically low mortgage rates, have also helped drive annual house price inflation to 9.8%, its highest level since July 2007.

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

"Our expectation is that house prices will maintain their current strong levels but that growth relative to the last two years will be at a slower pace.

"However, there are many variables which could push house prices either way, depending on how the pandemic continues to impact the economic environment."