Halifax data for 2007 has seen Scotland and the South East of England still leading the pack when it comes to house price growth, with both places experiencing an increase of 14 per cent during the last year.
Kensington and Chelsea is once again the most expensive place to live in Britain, with Leatherhead, Richmond upon Thames and Godalming making it into the top ten.
The average house price is now over £100,000 for all towns surveyed, with almost half of all British towns going further and breaching the £200,000 price barrier.
Nelson was the most affordable town in Britain at the end of 2007 with an average property price below £110,000.
This could all change going into the New Year though. Scotland is still expected to perform well with Lochgelly, Paisely and Greenock pulling ahead, whilst further South, Hackney and Chatham in Kent are both tipped to significantly grow in price - the former as a direct result of the pre-Olympic regeneration.
England
Kent generally is likely to outperform the South East average, partly due to infrastructure improvements. Seaside towns in the county are also relatively affordable, which will tend to stimulate demand from the growing number of people looking to live near the coast.
In northern England, house prices in Liverpool are predicted to outperform most other areas as demand for property increases as a result of substantial investment in the city in the run-up to Liverpool becoming European Capital of Culture in 2008.
Scotland
Lochgelly, Paisley and Greenock are forecast to have the strongest house price growth in Scotland. These are all towns with a combination of lower than average house prices and good transport links into Glasgow or Edinburgh. As buyers hunt for bargains, towns recording the biggest price rises are likely to be close to major conurbations. Specifically, towns with house prices below regional averages are most likely to attract the attention of bargain hunters.
Aberdeenshire is likely to see continued property price growth next year, given the strength of the local economy and energy prices. Since North Sea oil was discovered in the early 1970s, Aberdeen has become one of the world's major oil centres. House price performance in Aberdeen has tended to closely follow the crude oil price over the past 20 years.
Wales
Monmouthshire is expected to record above average price rises as demand is boosted by an increase in second home-buyers who are finding it increasingly difficult to find affordable property in the Cotswolds. The area has good motorway links to major population centres and offers a mixture of good facilities and attractive countryside. Newport and Pontypoolare predicted to record relatively high house price growth in 2008.
Colin Kemp, managing director at Halifax Estate Agents, commented: "Some areas will continue to be in high demand next year with property prices rising accordingly despite the expected subdued outlook across the market as a whole.
"Those areas that are likely to record the biggest price gains will tend to be those with a combination of good transport links to a major conurbation and relatively low average prices. A number of areas will see a boost to prices as a result of significant infrastructure projects."
