House prices soared by 8.4% over 2013 across the UK as the housing market revival took hold, Nationwide has reported.
The annual increase in prices across the country marks the biggest rise since June 2010, ranging from a 14.9% rise in London to a 1.9% lift in the North.
Nationwide UK house prices end the year up 8.4%. A year of two halves? pic.twitter.com/TjKIX2rxjy— Neal Hudson (@resi_analyst) January 3, 2014
The price of a typical London home has now reached £345,186, with house prices 14% above their annual peak.
Prices rose by 1.4% month-on-month in December to reach £175,826 on average, although they remain around 5% below all-time highs recorded in late 2007, Nationwide said.
Robert Gardner, Nationwide's chief economist, said: "For the second successive quarter, all 13 UK regions saw positive annual house price growth in quarter four. Part of the reason for the acceleration in house price growth is that the supply side of the market has not kept pace with the upturn in demand, even though buyer numbers remain subdued by historic standards.
"For example, in quarter three 2013 the number of housing transactions in England was around 25% below pre-crisis levels, while the number of new homes built was around 45% lower."
"However, the risk is that if demand continues to run ahead of supply in the quarters ahead, affordability may become stretched.
"House price growth has been outstripping average earnings growth since the start of the year."