The average house price went up by 7.4% on an annual basis in December 2021, says a new report from Zoopla.

This compares to house prices rising by 4.2% during 2020.

The latest figure means the average house price in the UK stands at £242,000, according to Zoopla’s figures – a rise of £17,000 during the year.

Zoopla highlights Wales as seeing the most rapid house price increases during 2021, at 11.3%, while London ticked up by only 2.6%.

Demand was the big story of 2021, and in the month to 16 January 2022, this flew up by 49% compared to the average demand levels over the same period in 2018 to 2021.

It adds that demand in London is rising, “particularly driven by international demand, so the increasing ease of global travel have spurred those purchasing as an investment and those buying to live.

“Average demand for London apartments at the highest level since April 2020” the report says.

And with the higher demand has come tight supply – although Zoopla says that this is starting to improve: stock levels are currently 44% lower than the five year average, an improvement on stock levels being 47% lower at the end of 2021.

The report states: “This is a relatively small change, but new supply coming to the market is tracking usual levels at this time of year, and valuation leads have jumped in the first few weeks of the year, signalling that supply levels could start to build this year, especially as the busy New Year period passes.”

Regarding London specifically, Chestertons chief executive Guy Gittins comments: “We expect the market to remain buoyant for at least the first quarter of 2022 as London is seeing the return of office workers, international students as well as Londoners who left the capital during the peak of the pandemic but are now seeking a return to the hustle and bustle of the city.”