Annual house price growth accelerated in December, increasing from 6.1% in November to 7.2%.
The data from the Office for National Statistics revealed that on a monthly basis house prices rose 1.4% to £220,000 in December. This is £15,000 higher than in December 2015 and £3,000 higher than in November.
Despite many property experts predicting a downturn in the housing market following the vote to leave the EU, the figures provide evidence that consumer confidence is still strong.
The main contribution to the increase in UK house prices came from England, where house prices increased by 7.7% over the year, with the average price now £236,000.
Wales saw house prices increase by 4.7% over the last 12 months to stand at £148,000. In Scotland, the average price increased by 3.5% to £142,000, while prices in Northern Ireland went up 5.7% to £125,000.
On a regional basis, London continues to be the region with the highest average house price at £484,000, followed by the South East and the East of England, which stand at £316,000 and £282,000 respectively. The lowest average price continues to be in the North East at £129,000.
The local authority showing the largest annual growth in the year to December was the Shetland Islands, where prices increased by 26.1% to £179,000.
The lowest annual growth was recorded in the City of Aberdeen, where prices fell by 9.8% to stand at £168,000.
The most expensive place to live in was Kensington and Chelsea, where the cost of an average house was £1.3 million. In contrast, the cheapest area to purchase a property was Burnley, where an average house cost £74,000.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “The continuing rise in house prices these figures highlight defines the current crisis in the housing market. Whereas traditionally the last month of the year would see a fall in activity as buyers focus on the festivities, today’s statistics confirm that demand held strong in December.
“With mortgage providers continuing to keep rates low, this is a trend that will likely continue in 2017, particularly as the Government’s measures on housing will take time to affect the market.”
Top and bottom five UK local suthorities by annual growth in the year to December 2016
| Top 5 Local Authorities | % change | Average price (£) |
| Shetland Islands | 26.1 | 178,947 |
| Basildon | 17.3 | 304,188 |
| Maldon | 16.2 | 317,887 |
| Rutland | 16.2 | 299,387 |
| East Renfrewshire | 15.4 | 220,072 |
| Bottom 5 Local Authorities | % change | Average price (£) |
| City of Aberdeen | -9.8 | 167,608 |
| Inverclyde | -7.6 | 94,965 |
| Cambridge | -5.1 | 403,682 |
| Ceredigion | -3.5 | 167,543 |
| Aberdeenshire | -3.5 | 191,467 |
| Source: Land Registry, Registers of Scotland and Land and Property Services Northern Ireland | ||
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