This surge saw the average home price reach £254,000 as positive price increases were seen across the country.
Although, London experienced the highest growth at 13.2% year-on-year, other regions, including the South East, jumped 7.1% year-on-year, and the West Midlands, rose 5.3%, also saw high price rises.
This jump also informed a monthly increase in house prices of 5.5% compared to December as the market continues to improve following a host of policies aimed at re-energising the property sector.
Although price rises may concern first-time buyers looking to enter the market, mortgage approval has become far more accessible to them, with the number of mortgages approved reaching 47,550 in January, nearly 3000 above the average of the previous six months which was 44,584.
First-time buyers also received more positive news in this year’s budget when Chancellor George Osborne confirmed plans to extend the first phase of the ‘Help to Buy’ scheme until 2020.
The scheme, offering government-backed loans of up to 20 per cent for buyers looking to purchase newly built properties, was launched last spring and allows first-time buyers to own a home with just a 5% deposit.
This extension is aimed at increasing the supply of newly-built homes, with the second phase of the scheme, launched last October, designed to help those with a regular income, but little in savings, to get on the housing ladder.
Adapted from Property Wire and BBC and The Week