UK house prices jumped in December as the General Election result “reignited” the property market, according to the latest figures.
UK house prices increased four per cent year-on-year and rose 1.7 per cent compared to November – the biggest monthly increase seen in 2019.
The increase is the largest month-on-month jump since February 2007, analysts said.
In the fourth quarter of last year house prices were one per cent higher than in the preceding three months, the Halifax house price index showed.
Howard Archer, chief economic advisor to the EY Item Club, said: “December’s jump in house prices reported by the Halifax is undoubtedly a major surprise, especially as it follows on from robust November data.
“Indeed, the December/November Halifax data suggest that house prices have stepped up a gear after largely struggling in recent months.”
The average house price in December was £238,963, the figures showed.
Marc von Grundherr, director at London estate agent Benham and Reeves, added: “Whether or not you agreed with the outcome, last month’s election helped to reignite the smouldering embers of an otherwise weary property market.
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“Not only is this boost immediately evident within December’s monthly and annual top line growth, but those of us on the front line also enjoyed an almost immediate uplift in buyer interest and commitment to transactions.”
Halifax managing director Russell Galley said: “Looking ahead, we expect uncertainty in the economy to ease somewhat in 2020, which should see transaction volumes increase and further price growth made possible by an improvement in households’ real incomes.”