There has been yet more positive news for the property market as house prices were up last month, according to new research.

There has been yet more positive news for the property market as house prices were up last month, according to new research.

In December, house prices rose 0.5 per cent to finish the year 2.7 per cent higher than in 2004, the Financial Times house price index, compiled by Acadametrics, revealed.

"UK house prices continue to move on a predictable and smooth path," said Gary Styles, chief economist and chairman of Acadametrics.

"Whilst our index hardly changed for a number of months, consistent with reports from estate agents of sticky house prices in most regions, the last two months do show some movement."

Howard Archer, economist at analyst Global Insight, said that the figures reflected a strengthening housing market.

Mr Archer also predicted that the UK market is "in for an extended period of relatively soft house price inflation".