However, property values in Central London fell by 8.7% on average during 2015, dragged down by higher Stamp Duty rates. Nonetheless, outside of these top five Central Boroughs, London experienced 11% boost in house prices year-on-year.
East Midlands jumped to second in regional rankings, driven by a 10.6% annual rise in Nottingham’s house prices.
Overall, December saw the strongest sales figures since 2006, up 7.1% year-on-year as buyers compete for fewer homes on the market.
Adrian Gill, director of Reeds Rains and Your Move estate agents, commented:
“The housing market has enjoyed some smooth sailing in the past year, with a steady 6.6% growth in house prices during 2015 rewarding homeowners and reinforcing our collective desire to own our own homes. The typical home across England and Wales is now worth £17,963 more than at the end of 2014, with new price records established every month throughout 2015 after twelve consecutive monthly rises.
“During December, house prices rose by £1,650 (0.6%), a pick up from the 0.4% monthly uplift in November, and we may subsequently see prices surge further during the first quarter of 2016 before the Government’s new housebuilding programmes have a chance to boost the supply of property on the market.
"Home sales have surfed the waves of buyer demand in December, increasing 8.5% compared to November 2015. A total of 85,000 home sales represents the best figure for this month since 2006, with sales buoyed up by the extra support available for first-time buyers and rising wages.
“The tide certainly turned for the Central London housing market last year. The hike to the top rate of stamp duty has taken the wind out of the centre’s sails, with house prices in the most expensive five boroughs falling by 8.7% on average during 2015. In Kensington and Chelsea, London’s most expensive borough, prices fell by 14.2% over the year. The tax changes announced in 2014’s Autumn Statement increased the rate of stamp duty on homes worth over £1.5 million to 12%, and while price increases in the central boroughs used to keep England and Wales’ house price growth afloat, since January they have been anchoring down the average price increases in London – and the country overall."
