UK house price average saw a £4,000 increase in December

Will the rise continue into 2017?

Average house prices in the UK saw a huge price hike by £4,000 in December. This has been the fastest acceleration in values since the Brexit vote back in June, according to Halifax.

Prices rose by 1.7 per cent in December, this reached a new all-time high of £222,484.

Halifax said prices in the final quarter of the year were 2.5 per cent higher than the previous quarter. The annualised rate of increase rose to 6.5 per cent in December, from 6 per cent in November.

Luton saw the biggest rise in house prices, this is according to research separate from Halifax. Prices jumped by a huge 19.4 per cent in 2016 from £214,934 to £256,636.

Martin Ellis, Halifax housing economist, told the Guardian: “House prices finished 2016 strongly. Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017.”

“UK house prices should, however, continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates. Overall, annual house price growth nationally is most likely expected to slow to one per cent-four per cent by the end of 2017. The relatively wide range for the forecast reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy this year.”