Data published today (26 February) by the Land Registry shows an annual house price increase of 7.1 per cent for 2015, which takes the average property value in England and Wales to £191,812.
The Land Registry House Price Index shows monthly house prices have increased by 2.5 per cent since December 2015.
Regional data indicates London experienced the greatest increase in its average property value over the last 12 months with a movement of 13.9 per cent.
Additionally, Wales experienced the greatest monthly growth with an increase of 3.7 per cent and the north east saw the lowest annual price growth with an increase of 0.2 per cent.
David Finlay, distribution director at Northview Group, said limited provision of housing has resulted in an increasing number of homebuyers being drawn to the same properties, creating a demand-centric market.
He said: “Prospective homeowners are therefore under pressure to move quickly when looking to purchase a property, with slow mortgage application processes often being the difference between getting a new home and missing out to another buyer.”
Stephen Smith, director at Legal and General Housing Partnerships, said it is important to keep in mind that the housing market is extremely regional, with growth being driven in particular by London and the south east.
He said: “Top line statistics, therefore, are not necessarily representative of the whole country.
“While price inflation may vary, one factor that is common across the UK is the need for improved housing supply.
“The market is weighted heavily towards the demand side, which ultimately has ramifications for affordability for many want-to-be homeowners.”
Data from last month showed the average house price had grown by 6.4 per cent year-on-year, reaching £188,270 according to the Land Registry.
House prices in England and Wales grew by 1.2 per cent between December and November 2015.