House prices rose by 7.2% in the year to December, keeping pace with the increase recorded in November, according to new figures.
The latest ONS and Land Registry House Price Index has revealed that the average house price in December 2016 was £220,000, £15,000 up on December 2015 and £3,000 higher than in November.
When reviewing the year overall, the Index shows that house price growth slowed in the second half of 2016 when compared with the first half of the year.
England saw prices rise by 7.7% over the year, where the average house price now stands at £236,000. England was therefore the main contributor to the UK’s overall price rise, driven by the high annual increases in the South East (8.5%) and London (7.5%).
In Wales prices rose by 4.7%, with the average house price now £148,000. Scotland, meanwhile, saw a rise of 3.5%, with prices standing at £142,000.
An increase of 5.7% was recorded in Northern Ireland, where the average price of a home is £125,000.
John Eastgate , sales and marketing director, OneSavings Bank said:
“Last week’s Housing White Paper reinforced the well-established truth that supply shortages have been the major contributor to rising house prices.
“These look set to rise steadily, outstripping real wage growth, stretching affordability and causing tension amongst long-term renters and aspiring homeowners alike.
“Today’s figures from the ONS only reinforce the scale of the challenge at hand, and the remedial action required to tackle this should not be underestimated. Although the White Paper has identified some potentially sound means of addressing our “broken” housing market, these solutions will take time to deliver.”
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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