UK house prices increased almost 10% during the month of December to surpass £208,000 and set a new record high, according to Halifax. This rise in house price represents a new high for the year. November set the bar for a year on year rise at 9%. Across the country, prices increased almost 2% between the last two months of the year.

Even though prices are currently soaring upward in all areas of the UK, many experts believe a softening trend in prices will soon take over. This trend is beginning to surface thanks to the quarterly growth rate which has remained below 2% for two quarters sequentially.

The growing possibility of the market softening was pointed out by Halifax economist, Martin Ellis.

Ellis continued his remarks, saying: "There remains a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale.

"This situation is unlikely to change significantly in the short term, resulting in continuing upward pressure on prices."

The coming trend has some obvious precursors as Jeremy Leaf, formerly of Rics, pointed out.

Leaf said: "The lack of supply is a huge issue that will dominate the market in coming months, despite government plans to encourage smaller house builders, and will also contribute to house-price growth over coming months.

"While the government is pledging to build more homes, there is no room for complacency.

"While everyone agrees that more building is required, the question is whether there is enough capacity in the market - builders, materials etc - to get the job done."