Halifax has reported that house prices in the three months to December were 6.5% higher than in the same three months of 2015.
In addition, prices in the last three months (October-December) were 2.5% higher than in the preceding quarter.
The monthly increase was 1.7%.
Halifax said the average house price in December was £222,484.
Martin Ellis, Halifax housing economist, said: “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 1-4% 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.”
Alex Gosling, CEO of online estate agents HouseSimple.com, added: “No one would have predicted back in June (2016) that average house prices would end the year at an all-time high.
“Doom-mongers predicted the UK economy would collapse after we voted to leave the EU. They also predicted that house prices would fall off a cliff. Neither has happened. On the contrary, four months of price rises confirm the housing market has gone into the New Year in surprisingly good health.
“There is still an issue around the continued lack of new properties coming onto the market, but buyers haven’t been scared off by Brexit, and there’s no reason to believe that buyers will be spooked when Article 50 is triggered.
“Experts are now predicting that economic uncertainty will rest heavily on the shoulders of the housing market this year, and that annual price growth will slow to low single figures.
“But considering the economic uncertainty the housing market faced in the second half of 2016, and how it responded, it wouldn’t be a major surprise if those predictions were knocked out of the ballpark.
“The housing market has proved extremely resilient to strong economic headwinds, and while mortgage rates remain low and assuming the labour market doesn’t being to falter, there’s no evidence to suggest the property market is about to hit a brick wall.”
