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  1. ITV Report

House prices rise in December amid 'relative stability' in property market

House prices continue to rise in many parts of the UK. Credit: PA

House prices have grown by 4.5% over 2016, with the average UK property worth £205,898 in December.

The year-end growth was better than some had predicted. Annual house prices growth stood at 4.5 percent in December, up from 4.4 percent in November, marking a 0.8% month-on-month increase according to the Nationwide Building Society.

For the first time since 2008 London's house price rate slowed to below the national average, the index found.

Despite the London's growth slowing, the gap between house prices in northern and southern England widened by around £11,500 over the last 12 months - and now stands at over £170,000.

East Anglia saw the strongest house price growth over the last year, with a 10.1% annual increase taking average property values there to £218,544.

In London, house prices have grown by 3.7% over the year, reaching £473,073 on average.

But other regions outstripped the capital's annual house price growth including the South West of England at 4.4%, the West Midlands at 4.1%, and Yorkshire and Humberside at 4%.

Robert Gardner, Nationwide's chief economist, said: "There were signs that London's significant period of outperformance may be drawing to a close.

"For the first year since 2008, annual house price growth in the capital was lower than the UK average, with prices increasing by 3.7% over the year, down from 12.2% in 2015.

"The South of England as a whole continued to see slightly stronger price growth than the North of England, though the differential narrowed."

House prices in Scotland have increased by 2.2% over the year to reach £142,895 on average, while in Wales an annual uplift of 2.4% takes the average price to £146,049.

House prices in Northern Ireland have edged up by 0.7% over the last year, taking the typical value there to £129,385.