The typical price of a home reached a record high of £254,822 in December, marking a £23,902 increase over the past year, Nationwide Building Society said.
Chief economist Robert Gardner said: "The price of a typical UK home is now at a record high of £254,822, 16% higher than before the pandemic struck in early 2020."
Nationwide said house prices were 10.4% higher annually and 1.0% higher month on month in December – typically a lull period for buyers.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said interest amongst buyers continued to peak in December.
"Although the last month of the year tends to be quieter for the market as people wind down for Christmas, there was still plenty of interest in buying homes and more demand than supply pushed house prices up further still," he said.
The average home in Wales in the last quarter of the year came in at £196,759, according to Nationwide Building Society.
But as the market picks up again, what were some of the most viewed homes over the festive period?
Rightmove’s property expert, Tim Bannister, said: “The festive season is always a great time for property lovers across Great Britain to browse some of the most amazing homes on the market, often in anticipation of their own New Year move.
“The most viewed homes over this year’s Christmas holidays are filled with both character and modern features, from the impressive Balgonie House in Paisley to a contemporary pad in Plymouth.”
1. Loch Lomond, 2 bedrooms, £300,000
This cottage in the village of Luss, on the banks of Loch Lomond, was one of Rightmove’s most viewed homes last month, luring in interest from those seeking peace and quiet with picturesque views.
The cottage is filled with features designed to give it a sense of warmth and comfort, including a spacious kitchen and large open fireplace.
The home is situated near the world-famous Loch Lomond golf club, alongside plenty of amenities and loch-side walking routes.
2. Lytham St Annes, 6 bedrooms, £2,500,000
This property in the town of Lytham St Annes in Lancashire won an award for the best residential conversion of an existing home.
The building really does need to be seen to be believed, with unique interior décor throughout, including its handmade fitted kitchen.
The six-bedroom, two-bathroom property includes a spacious games room and its own cinema room, alongside a bar that’s perfect for entertaining.
3. Paisley, 9 bedrooms, £995,000
Balgonie House is breathtaking at first view, with its brickwork and classical features immediately giving a sense of history and luxury.
Visitors are greeted with a regal entrance room and sitting room, and each apartment in this nine-bedroom, seven-bathroom property has its own unique character.
The home is situated amongst two acres of gardens, and behind a wall of mature trees, to give its residents space and privacy.