The average UK house price rose by nearly £24,000 during 2021 - the biggest increase ever recorded in a single year in cash terms.
The typical price of a home reached a record high of £254,822 in December, marking a £23,902 increase over the past year, according to Nationwide.
House prices were 10.4% higher annually and 1% higher month-on-month in December.
The building society's chief economist Robert Gardner explained that prices are now 16% higher than before the pandemic struck.
“Mortgage approvals for house purchase have continued to run above pre-pandemic levels, despite the surge in activity seen earlier in the year.
“Indeed, in the first 11 months of 2021 the total number of property transactions was almost 30% higher than over the same period of 2019.
“At the same time, the stock of homes on the market has remained extremely low throughout the year, which has contributed to the robust pace of price growth.”
Gardner said the outlook for the housing market “remains extremely uncertain”, with significant momentum and shifts in housing preferences as a result of the pandemic could continue to support activity and price growth.
The average house price in Scotland during the fourth quarter was £172,605 - up £15,836 in cash terms, or 10.1% year-on-year; which was in line with the UK generally.
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