London saw the lowest annual increase of all English regions with prices up 6.3%, the ONS said.
Other measures of Britain's housing market have weakened recently with property prices falling in month-on-month terms as borrowing costs rise and households contend with the tightest squeeze on living standards in decades.
Economists polled by Reuters in November forecast that house prices would fall by 5% this year, while analysts at Japanese bank Nomura have predicted a 15% drop by mid-2024.
(Reporting by Suban Abdulla; Editing by William Schomberg)
