The average UK house price rose by 2.2% to £235,000 in the year to December 2019, according to data collected by ONS.
Average house prices in England increased by 2.2% to £252,000.
Wales and Scotland both also recorded a 2.2% rise year-on-year, with average house prices increasing to £166,000 and £152,000 respectively.
Meanwhile, Northern Ireland noted a 2.5% uplift, boosting average house prices to £140,000.
All regions saw a rise in average property prices in the year to December 2019; the South East of England recorded the lowest average increase, up 1.2%.
Average property prices in Yorkshire and Humber noted the greatest rise over the selected timeframe, growing by 3.9%.
Franz Doerr, founder and chief executive of flatfair, said: “The continued growth of rental prices is preventing renters from accessing the homes that they want.
“As the ‘Boris bounce’ has driven up house prices, we are seeing a continuing trend of tenants opting to rent for longer than ever before.
“However, rising rents, and the need to scrape together a large lump-sum deposit when moving are huge barriers that need addressing.
“With a growing number of landlords leaving the sector leading to a reduction in the available housing stock, action needs to be taken to make the rental market work better for tenants and landlords alike.”
Hedi Zidan, founder and chief executive of Nestify, added: “Today’s figures demonstrate that the UK rental market is resilient, and that demand remains strong.
“Our landlords are increasingly meeting tenants who are seeking a range of different accommodation solutions, durations and tenancy options.
“This means that in order to maximise the current UK housing stock, it’s vital landlords have access to a range of short, medium and long-term rental options.
“These figures demonstrate how integral professional landlords are to UK housing and it is our belief that they should be supported to provide the range of tenancies that the UK rental population so clearly crave.
Marc von Grundherr, director of lettings and sales agent Benham and Reeves, stated: “Much has been made of the ‘Boris Bounce’ and there is no doubting that it spurred a huge uplift in market activity.
“While today’s figures display a slightly more muted market landscape in terms of actual sales, it is important to remember that even the most enthusiastic of buyers and sellers would struggle to get a transaction completed in the few short weeks between the election result and the end of the year.
“All in all a resilient show from the UK property market, particularly given the backdrop of political turbulence that has been prevalent for much of the last 12 months, and a foundation that should now see a strong performance for the year ahead following on from December’s election results.”
Gráinne Gilmore, head of research at Zoopla, added: “The certainty provided by the definitive result of the General Election was a shot in the arm for the UK housing market.
“The annual level of growth for the UK according to the ONS is the highest recorded in 2019, with all regions seeing positive growth for the first time in nearly two years.
“The pick up in annual price growth reflects the trends seen in Zoopla’s UK Cities House Price Index, which recorded the highest level of house price inflation in two years for December 2019.
“Zoopla data shows an increase in buyer demand since late last year, a trend that is set to continue amid real wage growth and low interest rates.
“However, in some areas there is still a shortage of homes coming to market to meet this demand.
“The upcoming Budget is a prime opportunity for the new Chancellor to address some of the factors affecting the housing market at present.
“Any review of stamp duty charges to help the movement of homeowners up and down the property ladder would be welcome, but the extent and nature of any reform, which must be balanced against political exigencies, remains to be seen.”
By Jake Carter
Source: Mortgage Introducer