House prices increased by 7.9% in the year to January 2016, according to the latest official figures.
Despite the festive break, home values were up 0.9% between December 2015 and January 2016, the figures from the Office of National Statistics revealed.
Breaking down the figures, the increase was not nationwide but depends very much on which part of the country where homeowners live.
In England, the average home value was 8.6% up, but in Scotland, prices stagnated at just 0.1% and in wales, they dropped by 0.3%.
The postcode lottery also applied in England.
House price divide
Taking London and the South East out of the equation, prices were up 5.1% year-on-year.
However, property price increases in London (10.8%), the South East (11.8%) and the East (9.8%) dragged the national average up.
The research also found the average UK home was priced at £292,000.
The annual rise was the highest percentage increase in UK house prices since March 2015, when values were up 9.6% year-on-year.
“House prices have consistently increased in price since early 2012 and in January, were 25% higher than the average levels in 2007 before the economic downturn struck,2 said the ONS report.
“Rising prices appear to be driven by more demand and a shortage of homes. Figures suggest not enough new homes are being built.”
New housing statistics on way
The ONS also announced that the UK will see the first official consolidated house price index published by the government in June 2016.
The index will replace the ONS statistics and figures published by the Land Registry and other government departments.
“House prices are a mixed bag across the country with the market cooling in Scotland and Wales, where prices are unchanged over the year, while values in London and the South power ahead,” said Richard Snook, a senior economist at financial firm PwC.
“Recent stamp duty changes that force landlords and second home owners to pay at a higher rate may be providing a small boost to the market as people rush to complete transactions before the change starts in April.”
The Council of Mortgage Lenders disclosed mortgage completions in advance of the stamp duty change are up around 5% on the same period last year.
