House prices continue to rise, says Halifax

7 January 2016

House prices rose by 9.5% in the three months to December compared to the same period the previous year.

The average UK house price was £208,286 in December 2015 compared to £189,428 in December 2014.

According to Halifax’s latest House Price Index, average prices rose on a year to year basis by 8%-10% in nearly every three month period in 2015.

See our section on buying property for tips and hints on how to get on the ladder.

The data also reveals prices rose by 1.6% on a quarterly basis between October and December 2015 compared to the preceding three months.

Month-on-month, prices increased by 1.7% between November and December.

The London borough of Newham recorded the biggest rise in house prices among major UK towns and cities over 2015, increasing by 22% from £261,399 to £319,522 compared to the previous year - nearly double the 12% increase in London as a whole.

Prices likely to continue rising

The Office for National Statistics (ONS) reported in December that house price rises could be explained by a shortage of homes for sale and rising demand – see the Moneywise news story.

Martin Ellis, Halifax housing economist, says this shortage could continue to push prices up. He explains: “There remains a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale.

“This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices.”

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