UK house prices rose by an average of £16,000 - or 8.5% - in 2014, according to the mortgage lender Halifax.

The research, based on data from its own lending, suggests prices in Greenwich in south east London surged by almost 25%.

Policymakers have warned of the dangers of a housing bubble developing.

The government insists the Bank of England has the tools it needs to prevent such a problem.

The Halifax says the average UK home now costs £209,428, although data from other lenders and official sources differ.

It says nine out of the 10 areas with the biggest rises this year are in London. The only place in the top ten not in the capital is Crawley, West Sussex.

Last week the Royal Institution of Chartered Surveyors predicted property prices across the UK would rise by an average of three per cent in 2015 with no growth in London.