Photo: Images_of_Money

House prices in England and Wales rose at their fastest rate in 10 months in December.

Average house prices rose 0.6 per cent from November 2015, taking the annual growth to 6.6 per cent - the equivalent of a £17,963 rise in a year and the fastest year-on-year rise since February 2015.

Property values fell in Central London by 8.7 per cent during 2015, dragged down by the higher Stamp Duty rates, but outside of the central five boroughs, even the capital city saw prices climb 11 per cent year-on-year, according to the latest figures from Your Move. East Midlands enjoyed the second highest regional growth, with Nottingham alone seeing property values climb 10.6 per cent. The strongest regional performance came from the South East, with a rise of 8.1 per cent from December 2014.

Indeed, the market's recovery has begun to spread to commuter towns, as well as some regional cities, with new price records established on average in England and Wales every month throughout last year.

The trend may continue into 2016, says Adrian Gill, director of Reeds Rains and Your Move estate agents.

"The rising tide of property prices has been propelled so far by a sinking supply of houses coming onto the market, compared with increasing
enquiries from potential buyers eager to clamber aboard the property ladder," comments Gill.

Indeed, last month was the strongest December for sales since 2006, up 7.1 per cent year-on-year as buyers competed for fewer homes on the market.

"If the current speed of house price growth continues into 2016, the value of the average home may soon pass the £300,000 watermark, having reached £250,000 in December 2013. Property price rises have certainly left the recession in their wake, with house prices passing the £200,000 milestone only in October 2005."

Sydney predicted to top prime price growth

Sydney is predicted to top prime property price growth in 2016. Knight Frank's forecast for the year highlights the Australian capital as the strongest performer in the coming year, although growth in the city is expected to slow from 15 per cent in 2015 to 10 per cent. The slower growth is attributed to an array of headwinds, including the country's cooling economy and the introduction of fees for foreign investment in real estate.

Of Knight Frank's 10 analysed cities, only London, Paris, Geneva and Singapore are expected to see price growth strengthen.

Author - Dan Johnson