The annual house prices have gone up by 6.2 per cent in January, 2017, according to information collated by UK government’s Land Registry.

With this, the average property value in the UK has now reached £234,794. Monthly, the house prices increased by 0.7 per cent in January 2017 since December 2016.

The annual rise in prices of London houses is 7.3 per cent while the monthly rise is 0.6 per cent. An average property in London is now valued at £490,718. East of England experienced the greatest increase in its average property price over the last 12 months with a growth of 9.4 per cent.

The increase in the prices of residential properties across the UK demonstrate the stability of the housing market, which is marked by demand outstripping supply. For instance, the number of completed house sales in England fell by 21.2 per cent to 62,482 in November 2016 compared with 79,243 in November 2015. This will further add to the housing crisis as the number of house buyers continues to rise.

The UK House Price Index is calculated by the Office for National Statistics and Land & Property Services/Northern Ireland Statistics and Research Agency. It applies a regression model that uses the various sources of data on property price, in particular Land Registry’s Price Paid Dataset, and attributes to produce estimates of the change in house prices each month. The Index provides a clear view of the UK housing market.