Halifax has warned house price growth will falter this year after “defying expectations” in 2021 with the biggest increases seen in almost two decades. 

Property values rose by 9.8pc in the year to December, according to the lender, after climbing for six consecutive months. 

In cash terms, the average property rose in value by £24,500 in 2021, the biggest year-on-year cash rise in 18 years, to hit a new high of £276,091. 

New records were set for house prices on eight occasions last year, but Halifax predicted growth would now slow “considerably” in the face of higher interest rates and squeezed household budgets. 

Russell Galley, of the bank, said: “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.”