UK house price average surges by £4,000 in December

The average UK house price surged by nearly £4,000 in December in the fastest acceleration in values since the Brexit vote, according to Halifax.

Prices rose by 1.7% in December alone, reaching a new all-time high of £222,484 and pushing the ratio of house prices to earnings to 5.81, just shy of its all-time high of 5.83 in July 2007 before the financial crisis struck.

The latest surge in prices follow a slew of end-of-year predictions forecasting a marked slowdown in the market in 2017.

Halifax said prices in the final quarter of the year were 2.5% higher than in the previous quarter, while the annualised rate of increase rose to 6.5% in December from 6% in November.