UK house prices have reached an all-time average record of £254,822 in December, according to lender Nationwide. While most stock markets around the world have continued to rise to new highs despite the gloomy economic outlook and a growing new variant 

The average price of a typical house in the UK is now £23,902 more than it was in January, making it the strongest year for price rises since 2006.

Nationwide and the Halifax have predicted the market would slow next year because the stamp duty holiday, which ended in September, forced buyers to bring purchases forward.

Nationwide also said the slowdown could be made worse by the spread of Omicron.

Interest rate factor

Nationwide's chief economist Robert Gardner said that even if the economy remains strong in spite the virus, higher interest rates were likely have a "cooling influence" on the housing market.

"House price growth has outpaced income growth by a significant margin over the past 18 months and, as a result, housing affordability is already less favourable than before the pandemic struck," Mr Gardner added.

The lender could be anticipating further increases to interest rates in the new year. Earlier this month, the Bank of England hiked base interest rates to 0.25% from their historic lows of 0.1% in a bid to curb the threat of rising inflation.

The US is expected to raise rates three times next year to tackle the highest price rises in nearly 40 years.

But the central banks cannot raise rates too high as this will mean higher payments on the trillions in debt they owe to lenders.

Increases in the cost of borrowing will be bad news for people trying to get on the property ladder and could herald the end of the decade long property and stock market boom.

Wales saw the highest growth with prices increasing 15.8% compared to the same time last year. Meanwhile, price increases in London slowed compared to last year, climbing just 4.2%.

In an interview with BBC's Today programme, Andrew Harvey, a senior economist at Nationwide, said the pandemic had caused a change in the behaviour of buyers who had been looking to leave large cities in favour or suburban and rural areas.

"I think London probably has suffered as a result of that," he said.

Average prices change across the UK
Wales: Up 15.8% to £196,759
Northern Ireland: Up 12.1% to £167,479
South West: Up 11.5% to £294,845
Outer South East: Up 11.3% to £329,869
North West: Up 11.2% to £196,806
Yorkshire and Humberside: Up 10.8% to £190,855
East Anglia: Up 10.4% to £268,146
East Midlands: Up 10.4% to £221,813
Scotland: Up 10.1% to £172,605
West Midlands: Up 9.4% to £227,031
Outer metropolitan area of London: Up 8.8% to £410,992
North: Up 7.7% to £148,105
London: Up 4.2% to £507,230

Source: BBC.

Mr Gardner said it was the first time since 1973, when Nationwide began publishing house price data, that the largest price rises had been seen in Wales.

"Price growth remained elevated in Northern Ireland at 12.1%, the strongest end to the year for the region since 2007," he said.

"Annual house price growth in Scotland was 10.1%, in line with the wider UK."

The year has been dominated by Covid lockdowns and restrictions which saw international flights to the UK slump by 71%, retail giants such as Debenhams go bust and thousands of small businesses and hospitality firms suffer losses.

Other businesses prospered during the last two years. Not just the likes of Amazon, but any business that adapted to the new world of online transactions and Zoom!

I want to thank all my viewers, listeners and readers for all your support this year, and wish you all a prosperous New Year.

See also:

How will you prosper in 2022? – Make 2022 your best year ever!

SPECIAL APPEAL

We have witnessed major climate disasters, such as the recent typhoon which has destroyed 90% of homes in the southern islands of the Philippines. While we in the west worry and fret over a shortage of some of our favourite food supplies, millions of people around the world are starving.

You can donate to my Rotary Fundraiser – to provide food, clean water and shelter to the people who have lost their homes and will not be enjoying a merry Christmas. https://www.facebook.com/groups/174851346196950/permalink/1621462918202445/

Money also migrated so-called safe property havens in the UK, Canada, US and Australia.

Wealthy people have sought second and third passports and residency in countries offering citizenship for cash or property investment. 

Financial education in investing is the key to building and keeping wealth. Never stop learning! 

Keep watching or listening to my free podcasts on iTunes and subscribe to my YouTube channel for regular financial news and updates. 

Can you get rich by saving alone?

NEW BOOK LAUNCH – BORROW AND GROW RICH – SPECIAL OFFER ENDS SOON!

I cover financial education and money mindset in my books, like Borrow and Grow Rich (available for Kindle pre-order now - https://www.amazon.co.uk/s?k=borrow+and+grow+rich&ref=nb_sb_noss), which you can order on Amazon.

In this book, you will learn how the power of leverage and inflation can make you rich without working any harder than the average employee. You will also learn the difference between good debt and bad debt and why saving alone will not make you rich.

Pre-order BORROW AND GROW RICH before 31 December and I will send you a FREE PDF copy of Yes, Money Can Buy You Happiness.

Borrow and Grow Rich is available for Kindle pre-order now - https://www.amazon.co.uk/s?k=borrow+and+grow+rich&ref=nb_sb_noss

DOWNLOAD CHAPTER ONE AND TWO FREE

https://charleskelly.clickfunnels.com/optin1639410805951

Wishing you a happy prosperous New Year!

UK house prices have reached an all-time average record of &pound;254,822 in December, according to lender Nationwide. While most stock markets around the world have continued to rise to new highs despite the gloomy economic outlook and a growing new variant&nbsp;
The average price of a typical house in the UK is now &pound;23,902 more than it was in January, making it the strongest year for price rises since 2006.
Nationwide and the Halifax have predicted the market would slow next year because the stamp duty holiday, which ended in September, forced buyers to bring purchases forward.
Nationwide also said the slowdown could be made worse by the spread of Omicron.
Interest rate factor
Nationwide's chief economist Robert Gardner said that even if the economy remains strong in spite the virus, higher interest rates were likely have a "cooling influence" on the housing market.
"House price growth has outpaced income growth by a significant margin over the past 18 months and, as a result, housing affordability is already less favourable than before the pandemic struck," Mr Gardner added.
The lender could be anticipating further increases to interest rates in the new year. Earlier this month, the&nbsp;<a href="https://homebasedbusinessideasuk.blogspot.com/2021/12/interest-rates-rise-as-inflation-soars.html">Bank of England hiked base interest rates&nbsp;to 0.25%</a> from their historic lows of 0.1% in a bid to curb the threat of rising inflation.
The US is expected to raise rates three times next year to tackle the highest price rises in nearly 40 years.
But the central banks cannot raise rates too high as this will mean higher payments on the trillions in debt they owe to lenders.
Increases in the cost of borrowing will be bad news for people trying to get on the property ladder and could herald the end of the decade long property and stock market boom.
Wales saw the highest growth with prices increasing 15.8% compared to the same time last year. Meanwhile, price increases in London slowed compared to last year, climbing just 4.2%.
In an interview with BBC's Today programme, Andrew Harvey, a senior economist at Nationwide, said the pandemic had caused a change in the behaviour of buyers who had been looking to leave large cities in favour or suburban and rural areas.
"I think London probably has suffered as a result of that," he said.
Average prices change across the UK
<ul>
<li aria-level="1">Wales: Up 15.8% to &pound;196,759</li>
<li aria-level="1">Northern Ireland: Up 12.1% to &pound;167,479</li>
<li aria-level="1">South West: Up 11.5% to &pound;294,845</li>
<li aria-level="1">Outer South East: Up 11.3% to &pound;329,869</li>
<li aria-level="1">North West: Up 11.2% to &pound;196,806</li>
<li aria-level="1">Yorkshire and Humberside: Up 10.8% to &pound;190,855</li>
<li aria-level="1">East Anglia: Up 10.4% to &pound;268,146</li>
<li aria-level="1">East Midlands: Up 10.4% to &pound;221,813</li>
<li aria-level="1">Scotland: Up 10.1% to &pound;172,605</li>
<li aria-level="1">West Midlands: Up 9.4% to &pound;227,031</li>
<li aria-level="1">Outer metropolitan area of London: Up 8.8% to &pound;410,992</li>
<li aria-level="1">North: Up 7.7% to &pound;148,105</li>
<li aria-level="1">London: Up 4.2% to &pound;507,230</li>
</ul>
Source: BBC.
Mr Gardner said it was the first time since 1973, when Nationwide began publishing house price data, that the largest price rises had been seen in Wales.
"Price growth remained elevated in Northern Ireland at 12.1%, the strongest end to the year for the region since 2007," he said.
"Annual house price growth in Scotland was 10.1%, in line with the wider UK."
The year has been dominated by Covid lockdowns and restrictions which saw international flights to the UK slump by 71%, retail giants such as Debenhams go bust and thousands of small businesses and hospitality firms suffer losses.
Other businesses prospered during the last two years. Not just the likes of Amazon, but any business that adapted to the new world of online transactions and Zoom!
I want to thank all my viewers, listeners and readers for all your support this year, and wish you all a prosperous New Year.
See also:
<a href="https://moneytipsdaily.com/how-to-prosper-and-make-your-dreams-become-reality-in-2022/">How will you prosper in 2022?</a> &ndash; Make 2022 your best year ever!
SPECIAL APPEAL
We have witnessed major climate disasters, such as the recent typhoon which has destroyed 90% of homes in the southern islands of the Philippines. While we in the west worry and fret over a shortage of some of our favourite food supplies, millions of people around the world are starving.
You can donate to my <a href="https://www.facebook.com/groups/174851346196950/permalink/1621462918202445/">Rotary Fundraiser</a> &ndash; to provide food, clean water and shelter to the people who have lost their homes and will not be enjoying a merry Christmas. <a href="https://www.facebook.com/groups/174851346196950/permalink/1621462918202445/">https://www.facebook.com/groups/174851346196950/permalink/1621462918202445/</a>
Money also migrated so-called safe property havens in the UK, Canada, US and Australia.
Wealthy people have sought second and third passports and residency in countries offering citizenship for cash or property investment.&nbsp;
Financial education in investing is the key to building and keeping wealth. Never stop learning!&nbsp;
Keep watching or listening to my free podcasts on iTunes and subscribe to my <a href="https://www.youtube.com/channel/UC2tLUxod264Qy0gPntvx6Eg/featured">YouTube channel</a> for regular financial news and updates.&nbsp;
Can you get rich by saving alone?
NEW BOOK LAUNCH &ndash; BORROW AND GROW RICH &ndash; SPECIAL OFFER ENDS SOON!
I cover financial education and money mindset in my books, like Borrow and Grow Rich (available for Kindle pre-order now - <a href="https://www.amazon.co.uk/s?k=borrow+and+grow+rich&amp;ref=nb_sb_noss">https://www.amazon.co.uk/s?k=borrow+and+grow+rich&amp;ref=nb_sb_noss</a>), which you can order on Amazon.
In this book, you will learn how the power of leverage and inflation can make you rich without working any harder than the average employee. You will also learn the difference between good debt and bad debt and why saving alone will not make you rich.
Pre-order BORROW AND GROW RICH before 31 December and I will send you a FREE PDF copy of Yes, Money Can Buy You Happiness.
Borrow and Grow Rich is available for Kindle pre-order now - <a href="https://www.amazon.co.uk/s?k=borrow+and+grow+rich&amp;ref=nb_sb_noss">https://www.amazon.co.uk/s?k=borrow+and+grow+rich&amp;ref=nb_sb_noss</a>
<a href="https://charleskelly.clickfunnels.com/optin1639410805951">DOWNLOAD CHAPTER ONE AND TWO FREE</a>
<a href="https://charleskelly.clickfunnels.com/optin1639410805951">https://charleskelly.clickfunnels.com/optin1639410805951</a>
Wishing you a happy prosperous New Year!

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.  Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.  Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.   For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness.&nbsp; Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business.&nbsp; Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation. &nbsp; For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

Money Tips Podcast

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. 

Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business. 

Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation.  

For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

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