The Land Registry has reported an annual price increase of 6.4% in December 2015.
This takes the average property value in England and Wales to £188,270.
Meanwhile, monthly house prices rose by 1.2% since November 2015.
London experienced the greatest increase in its average property value over the last 12 months with a movement of 12.4%, while the capital also experienced the greatest monthly growth with an increase of 2.1%
The North East saw the lowest annual price growth with an increase of 0.8% and Wales saw the most significant monthly price fall with a decrease of 0.8%.
Adrian Whittaker, sales director of New Street Mortgages, said: “These unseasonal increases in house prices over the Christmas period characterise a market where limited supply and rising demand is making the race to buy a property more and more competitive.
“In such a market, it’s crucial that borrowers have access to a lender that can offer a fast and consistent mortgage application process, as this could be the difference between securing a property and losing out to another buyer. Lenders need to make the application of technology a priority if they are to keep up with the demands of today’s brokers and borrowers and deliver the most efficient lending process.”
The number of completed house sales in England and Wales fell by 8% to 79,960 compared with 86,452 in October 2014. The number of properties sold in England and Wales for more than £1 million fell by two% to 1,231 from 1,258 a year earlier.
Repossessions in England and Wales fell by 51% to 431 compared with 888 in October 2014 and the region with the greatest fall in the number of repossession sales was London with a fall of 71% from October 2014.
