Prices in the three months to the end of 2015 were 9.5 per cent higher than in the same three month period a year earlier - and the average price of a UK home is now £208,286 according to the Halifax index.
"There remains a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale. This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices” says Halifax housing economist Martin Ellis.
Homes are also becoming less affordable, as the house price to earnings ratio rose to 5.58 in December from 5.49 in November and 5.10 at the end of 2014, taking it to its highest level since January 2008, according to the data.
However, price growth in the final quarter of last year was slightly lower than in the preceding three months.
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