Business And Leadership: UK house prices post fifth consecutive monthly rise

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UK house prices post fifth consecutive monthly rise

08.12.2009
UK house prices rose for the fifth month in a row in November, according to the latest Halifax house price index.

With house prices increasing by 1.4pc in November, average UK house prices are now more than 4pc higher over the first 11 months of the year.

On an annual basis, house prices in November were 1.6pc lower.

However, house prices over the period September to November were 3.7pc higher than in the previous three months, the Halifax index shows. This is the biggest increase on a three-monthly basis since November 2006.

The Halifax figures also showed that UK house prices have increased by 8.5pc since reaching a trough in April 2009, which represents an increase in the average price of £13,174. This follows a decline of 23pc between August 2007 and April 2009.

According to housing economist Martin Ellis,the recovery in UK house prices since the spring has been driven by increased demand for property, largely due to the improvement in affordability for existing homeowners and first-time buyers who can raise the necessary deposit.

This somewhat higher demand combined with a low level of properties available for sale to push up prices, Ellis said.

“Further ahead, the prospects for the market will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale. Overall, our view is that house prices will be flat during 2010,” he added.