The Office for National Statistics (ONS) has reported an annual price increase of 6.2% in January, which takes the average property value in the UK to £218,255.
Monthly house prices have risen by 0.8% since December 2016. The monthly index figure for the UK was 114.5.
In England, the January data shows an annual price increase of 6.5% which takes the average property value to £234,794. Monthly house prices have risen by 0.7% since December 2016.
Wales shows an annual price increase of 4.2% which takes the average property value to £145,933. Monthly house prices have fallen by 0.6% since December 2016.
London shows an annual price increase of 7.3% which takes the average property value to £490,718. Monthly house prices have risen by 3% since December 2016, the greatest regional increase.
The East of England experienced the greatest increase in its average property price over the last 12 months with a movement of 9.4%.
The North East saw the lowest annual price growth with an increase of 2.2% and Yorkshire and the Humber saw the most significant monthly price fall with a movement of -2.6%.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “As house prices begin 2017 on an upwards curve, our country’s housing problem continues to worsen. Despite record low interest rates, the latest ONS figures show that average house prices in England & Wales have now reached 7.6 times more than average earnings. This gap is only going to widen if prices continue to follow this trend, preventing many from taking their first steps onto the property ladder.
“The root of this ongoing problem lies with supply not being able to keep up with demand. To put it simply, we are not building enough homes. Although the government’s recent Housing White Paper promised change, we need to start seeing these promises being delivered against. It is vital we start addressing these problems head on and find a workable solution to this major issue.”