UK house prices rise 6.4% in December, Land Registry reveals

UK house prices rose 6.4% to an average of £188,270 in December compared to the same month a year ago, data revealed on Friday.

The Land Registry said London was the biggest driver of house prices with a 12.4% year-on-year jump last month to an average of £514,097. The city also had the highest monthly growth at 2.1%.

The North East experienced the lowest annual price growth at 0.8% while Wales saw the largest monthly price fall at 0.8%.

“We maintain the view that house prices are likely to see solid increases over the coming months amid healthy buyer interest and a shortage of properties,” said Howard Archer, chief UK and European economist at IHS Global Insight.

“Indeed, the increased likelihood that interest rates may not rise until at least the fourth quarter of 2016 could very well give a boost to housing market activity.”

Overall the number of completed house sales in England and Wales fell 8% to 79,960. The number properties sold in England for more than £1m dropped 2% to 1,231 from 1,258 a year earlier.