UK House Prices Continue To Rise

House prices in the UK increased by 1.1% in November compared to the previous month.

In its latest report, the Halifax added that prices had risen by 7.7% annually.

The bank, which is part of Lloyds Banking Group, said a strong demand for homes, as well as low levels of property on the market had pushed the cost of housing up.

The average home in the UK is now valued at £174,910.

Commenting on the figures, Martin Ellis, chief economist at the Halifax said: "House prices in the three months to October were 1.6% higher than in the previous three months; this rate is below the increases of 2.0-2.1% recorded in each of the previous four months.

"Despite the slowdown in the quarterly rate, the annual rate continued to rise with prices in the three months to October 6.9% higher than in the same three months last year.

"Demand has increased this year, putting upward pressure on house prices and increasing levels of activity. Low interest rates, and higher consumer confidence supported by the increasing evidence that a sustainable economic recovery may now be underway, are helping to increase housing demand. Schemes, such as Funding for Lending and Help to Buy, also appear to have boosted demand.

"Despite increases in the past year both house prices and sales remain below the levels reached at the height of the last housing market cycle in 2006/2007. Sentiment towards selling has also improved in recent months in response to the pick-up in the market, which should help to increase the availability of properties on the market over the coming months."

Month-on-month, the increase was the 10th successive monthly rise in prices, the bank said, while the three-month on three-month comparison – which highlights a more accurate picture of the housing market, revealed that prices had increased by 2.1% the three months to the end of November when compared to the previous quarter.

In its report, the Halifax added the UK market had not yet returned to its 2007 peak.

(JP/IT)