The fourth quarter of the calendar year typically marks two things. The first is the Christmas shopping season and all the fresh credit card debt which accompanies it. The second is the slowdown in activity within the UK housing market. This slowdown is marked with fewer house sales and fewer remortgage transactions. The result is a hampering of growth of overall house prices. The fourth quarter of 2016 proved something totally unusual could take place.

Overall, house price growth increased almost 2% for the month. That is two with a 2. This rise in house price growth took the annual increase in house price growth to more than 6.4%. Coincidentally, this also marked a level of prices to house prices ratio to a dimension not seen since the economic crash.

According to Halifax, house prices grew by almost £4,000 within the month of December which is the fastest pace since the historic Brexit vote which took place in June of last year.

The average price of a house in the UK now sits at £222,484.

Martin Ellis, Halifax economist, commented on the climate moving forward, saying: “House prices finished 2016 strongly. Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017.”

Ellis added: “UK house prices should, however, continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates. Overall, annual house price growth nationally is most likely expected to slow to 1%-4% by the end of 2017. The relatively wide range for the forecast reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy this year.”