UK house prices end 2009 up 1.1pc

The average price for a house in the UK now stands at £169,042, following the sixth month in a row in December of price increases.

December’s price increase also means that UK house prices have now increased for the second successive quarter in a row.

Notably, prices in the fourth quarter of 2009 were 3.5pc higher than in the third quarter, which represents the biggest quarterly increase since the fourth quarter of 2006.

House prices have now risen by 9.4pc since hitting a low in April 2009, which represents an increase in the average UK house price of £14,552 over this period.

Interest rate cut helped stimulate demand
According to Halifax’s housing economist, Martin Ellis, the significant cut in interest rates following the worldwide financial upheaval in the autumn of 2008 has markedly reduced the burden of servicing a mortgage for many households.

“This has helped to stimulate housing demand, albeit from a low base,” he observed.

“The recent improvement in the labour market, highlighted by increasing numbers of people in employment in both September and October, has also supported housing demand,” Ellis added.

2010 house prices
According to Ellis, Halifax’s current view on UK house prices over the course of 2010 is that they will be flat. “The prospects for the market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale,” he said.

In contrast, the latest report from Irish property website Daft.ie released this morning has shown that Irish house prices fell by 19pc during 2009 and are now more than 30pc below their peak levels of early 2007.