The Shetland Isles saw the biggest house price increase in the UK last year, registering a rise of 26%, according to the Office for National Statistics (ONS).
Across the country as a whole, prices rose by 7.2%, compared to 6.9% in 2015.
The average price of a house or flat reached £220,000 in the year to the end of December, the ONS said.
The region with the largest increase was the East of England (11.3%), followed by the South East (8.5%).
After Shetland, the place where prices rose fastest was Basildon, in Essex, which saw an average rise of 17.3%. Nearby Maldon saw prices go up by 16.2%.
Prices fell most dramatically in Aberdeen, down 9.8%. The market there has suffered from a downturn in the oil industry.
Most experts believe house price inflation in 2017 will be much lower than in either of the two previous years.