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UK house prices in December rise at fastest pace in nine months

Staff Writer |
UK house prices rose 1.7% in December compared to a month ago to an average of £222,484, boosted by a continued shortage of properties and record low interest rates.

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Halifax said it was the fourth consecutive monthly rise and the largest increase since March 2016.

In the three months to December prices rose an annualised 6.5% and a quarterly 2.5% on a seasonally adjusted basis.

It marked the second consecutive annual increase following 6% growth in November and a 2016 low of 5.2% in October. However, it remains below the peak 2016 annual increase of 10% in March, which came ahead of April's rise in stamp duty for second homes and buy-to-let properties and before June's Brexit vote.

The quarterly rate of change in December was the highest since March 2016.

Separate research by Halifax showed Luton recorded the biggest percentage rise in house prices over the past year, up 19.4% in 2016 to an average of £256,636.

The outer London borough of Barking and Dagenham experienced the second biggest increase in average house prices with growth of 18.6%. Dunstable, near Luton, came in third place with a 17.9% rise.

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