The average house price in the UK stood at £200,307 in December. Prices have now risen for the eighth consecutive month. For the quarter ending December 2009, house prices rose by 2.9%, a slight decrease compared to the 3.1% rise in the quarter ending September 2009.

Average annual house prices rose in England by 3% to reach £206,694, by 3.8% in Scotland to reach £160,249, by 1% in Wales to reach £150,481 but they fell in Northern Ireland by 6% to £175,170.

In December, London had the highest average house price at £316,695 while the lowest average price was in the North East at £140,551. Of the English regions, only the East, London, the South East and the South West had average prices above the UK average.

The average price paid by first-time-buyers across the whole of the UK was £149,699 in December, a rise of 2.8% from November. The average price paid by former owner occupiers was £231,470, up 2.2% from November.

For a new property, the average price across the whole of the UK was £190,919 in December, a drop of 1.5% from December 2008, while the average price paid for a pre-owned property was £200,956, a rise of 3.2%.

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Simon Rubinsohn, chief economist at Royal Institution of Chartered Surveyors (RICS), said the data provided further evidence of the recovery in the residential market.

He added: “However, although things are looking better at the moment, the second half of the year is likely to be more challenging again. Not only is the cost of secured borrowing likely to move higher, but the pre-announced increase in the top tax rate will begin to bite.

“Further fiscal tightening could also be announced after the general election. As a result, we suspect that the price trend is likely to stabilise and possibly turn down in the latter part of 2010,” he added.