Housing market cooling but prices rise in December still rising

Published: February 11, 2008

House prices in the UK augmented by 0.4 per cent in the month of December, it has been revealed.

Conversely, annual house price inflation has receded from 9.7 per cent in November to 9.1 per cent in December.

According to Howard Archer, chief UK economist at Global Insight, this is evidence that the housing market, though cooling, is still robust.

"The DCLG tends to provide lagging evidence on house prices, as the office calculates its index at the time when mortgages are completed.

"Nevertheless, the data reinforce the general view that house prices are currently cooling markedly - but not collapsing - in the face of increased affordability pressures and tightening lending practices.

"We expect these factors to continue to bite over the coming months."

The average house price in the UK is now £219,591, with prices at their highest in London, averaging £296,160.