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House prices rose by £12,000 in 2017 to hit an average of £227,000, official data reveals

  • The average house price rose from £215,000 to £217,000 during the past year 
  • Kensington prices slumped by 10.7% – but is still the most expensive in the UK 
  • Prices are rising fastest on the island of Orkney, surging by more than 18%  

House prices rose by an average of £12,000 in 2017, new statistics revealed today. 

The Office for National Statistics said the average UK house price was £227,000 in December 2017 compared to £215,000 a year. 

Prices are growing fastest in Scotland – at 7.7 per cent a year – and slowest in Northern Ireland, at 4.3 per cent. 

The Office for National Statistics said the average UK house prices rose by 5.2% in the year to December 2017, making the average property worth £227,000 compared to £215,000 a year earlier 

The Office for National Statistics said the average UK house prices rose by 5.2% in the year to December 2017, making the average property worth £227,000 compared to £215,000 a year earlier 

Within the English regions, the South West showed the highest annual growth, with prices increasing by 7.5 per cent in the year to December 2017.

The lowest annual growth was in London, where prices increased by 2.5 per cent over the year.

The local authority showing the fastest growth was the Orkney Islands, where prices increased by 18.2 per cent to stand at £147,000 on average.

The lowest annual growth was recorded in Kensington and Chelsea, where prices fell by 10.7 per cent to stand at £1.2 million on average – although the London borough still has the highest average house prices.

The least expensive place to buy a property is Burnley in Lancashire, where the average house price is £78,000.

The report cautioned that low sales numbers in some local authority areas can lead to volatility in the house price growth figures.

The lowest annual growth was recorded in Kensington and Chelsea (file image on Gloucester Road), where prices fell by 10.7 per cent to stand at £1.2 million on average - although the London borough still has the highest average house prices

The lowest annual growth was recorded in Kensington and Chelsea (file image on Gloucester Road), where prices fell by 10.7 per cent to stand at £1.2 million on average – although the London borough still has the highest average house prices

The local authority showing the fastest growth was the Orkney Islands (file image of Stromness), where prices increased by 18.2 per cent to stand at £147,000 on average.

The local authority showing the fastest growth was the Orkney Islands (file image of Stromness), where prices increased by 18.2 per cent to stand at £147,000 on average.

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said: 'The increase in prices for December, albeit at a slowing pace, reflects more the shortage of available property to buy at that time rather than market strength or otherwise, as transaction numbers were relatively low.

'Since December we have noticed more balance with a slower increase in instructions and viewings as we would expect at this time of year, although some buyer caution is likely to remain until the market finds its new level this year.'

Howard Archer, chief economic adviser at the EY Item Club, said the latest survey evidence also points to 'lacklustre housing market activity' in early 2018.

He said: 'House-buyers will also likely be concerned about further interest rate hikes in 2018 following November's first tightening of monetary policy by the Bank of England since 2007.'

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