HOUSE prices rose by 1.2 per cent this month and 9.3 per cent over the year as the property market ended 2000 on a high note, the Nationwide said.

While next year would not see growth of the same levels - with the annual rate expected to be around seven per cent - the market would nevertheless be steady, said the building society. The rise in December means the average price of a property now stands at £82,188.

David Parry, Nationwide's divisional director, said: ''The year has ended with plenty of festive cheer. In 2000 we've had much talk of booms and then busts.

''In reality the market paused for breath mid-year and is now moving ahead at a steady, sustainable pace.''

All regions of Britain prospered during 2000, but there were wide variations in the pace of growth, said the Nationwide.

In London, the south-east and south-west of England, for instance, the pace of growth in the first half of the year was frenetic, particularly in the first quarter, with prices rising by around 20 per cent.

While growth eased off in the summer, it still remained strong in those areas, the building society added.

The north of England, Humberside, Yorkshire and Scotland, by comparison, saw a year of steady, reliable annual growth, running at around five per cent.

The East Midlands saw growth of around 11 per cent for the year, with Wales growing by about six per cent and Northern Ireland by 15 per cent

Part of the decline in the middle of 2000 was caused by first-time buyers being priced out of the market