Annual house price inflation is currently at 10% and the average house price stands at £208,286. But it could rise further according to two-thirds of Britons (67%), who expect property prices to continue to increase during 2016.

Only 6% expect property prices to be lower in a year’s time, while one in five Britons (20%) predict no change, according to new research by Halifax.

Regional view

But we are not so optimistic when it comes to the housing market in our local area. When asked about average property prices in 12 months’ time in the area where they live, only 58% of the British public expect them to rise, 27% think it won’t change and 6% expect a fall.

The survey revealed marked regional differences, with 75% those living in the South of England saying they expect UK average property prices to be higher at the end of 2016, compared to just 59% in the Midlands.

Craig McKinlay, mortgages director at Halifax, said: “A north/south divide is clear from the survey with those living in the north less likely to expect price gains over the coming year. This largely reflects the regional house price pattern experienced over the past few years with London and the South East leading the recovery.”