In month-on-month terms, house prices rose 1.3%, which marked the fourth consecutive increase and the biggest monthly gain since June 2022.
Kim Kinnaird, director of mortgages at Halifax, said a recent drop in mortgage rates, falling inflation and a resilient labour market had boosted confidence among buyers and sellers in early 2024.
The Bank of England's next move in interest rates looks likely to be downwards - although when is open to question - which may support housing market activity in future months.
In a speech on Wednesday, BoE Deputy Governor Sarah Breeden said signs of resilience in the housing market could suggest that demand in the economy is stronger than the central bank expected.
Britain's housing market - like those in many Western countries - boomed during the COVID-19 pandemic, boosted by record-low interest rates, temporary tax breaks and greater demand for living space as people worked from home.
Official figures for November showed that British house prices had fallen 2% from their peak in September 2022, but were still 24% higher than before the pandemic.
(Source:Reuters)
