On a seasonally adjusted basis, average house prices decreased by 0.2% between November and December 2015.
During the year to December 2015, average house prices increased by 7.3% in England (down from 8.3% in the year to November 2015), 1.0% in Wales (down from 1.4%) and 1.5% in Northern Ireland (up from 0.9%). There was a 0.2% decrease in average house prices in Scotland (down from a 1.2% increase in the year to November 2015).
Annual house price increases in England were driven by an annual increase in the East (9.7%), London (9.4%) and the South East (8.8%).
Excluding London and the South East, UK house prices increased by 5.1% over the year to December 2015, down from 5.8% in the year to November 2015.
The North East continues to have the lowest annual growth of the 9 regions, with prices increasing 0.9% in the year to December 2015 (up from 0.3% in the year to November 2015).
In December, average house prices in only 2 of the 9 English regions were at record levels. The North East is the only English region yet to surpass its pre-economic downturn peak (prices in the North East remain 4.3% below the peak of January 2008).
Richard Sexton, director of chartered surveyor e.surv, commented:
“There seems to be something of a mismatch within the UK housing market at the minute. Mortgage lending remains healthy, reaching its highest peak in nine years in January. A buy-to-let rush to beat April’s stamp duty changes, is part of this story, spurring a notable lending lift.
“Buyer’s prospects appear healthy too. With low inflation, rising employment and wages boosting savings potential, home movers should have more options in the housing stakes and be in a better position to pick and choose. But while lending and personal finances aren’t holding aspiring homeowners back – rising prices certainly are."
Mark Posniak, Managing Director at Dragonfly Property Finance, added:
"They may be geographical neighbours but England, Wales, Scotland and Northern Ireland could be in different time zones when it comes to their property markets.
"The patchwork nature of the property market continues at the regional level. Within England, London, the East and South East are in a different league to other areas of the country.
"Although average UK prices may have dipped slightly in December, further price rises throughout 2016 are almost certain. The severe imbalance between supply and demand and the continued low interest rate environment are placing upward pressure on values."
