The latest House Price Index showed the cost of the average home in England and Wales rose by over 6 per cent, with a 1.2 per cent cost jump from November.
However, the number of properties sold for over £1 million and £2 million dropped by 2 per cent and 17 per cent respectively in both London and England and Wales in October 2015.
Prices in the capital he capital continued to spiral with a monthly growth of 2.1 per cent and an annual growth of 12.4 per cent.
Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), commented:
“Homebuyers in December experienced a notable annual jump in prices, with no glimpse of a slowdown in market activity despite the festive period.
“However, this growth has not been spread evenly across the country. House prices in London have increased by more than 10 per cent over the year, shooting up to an average of half a million pounds. In contrast, regions like the North East have seen sluggish growth of less than one per cent.
“Homeowners in regions with lacklustre price growth will have less to cheer about than those watching the value of their property soar. However, rising prices can be an obstacle for would-be buyers struggling to keep pace as prices sprint ahead.
“As house prices in London rise annually by double figures, first-time buyers in the capital have an especially tough market to battle with. The Government’s London Help To Buy scheme is a sorely needed initiative, but presents a temporary solution to a long-term problem. Insufficient property supply will continue to drive up higher prices if not properly addressed.”