UK house prices 1.1% higher on year

Permalink: UK house prices 1.1% higher on year
by Kay Murchie

The Halifax has today reported a 1% rise in house prices for the month of December compared with the previous month - the sixth consecutive month that house prices have risen, driven by higher demand and a shortage of properties up for sale.

According to the lender, prices were 1.1% higher in December compared with a year ago - the first annual rise since March 2008.

The latest gain takes the average cost of a home to £169,042, according to the Halifax.

However, the Halifax expects house prices to be flat over the course of the next 12 months as a result of the current economic climate.

Commenting on the figures, Halifax housing economist Martin Ellis, said: “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.”

Meanwhile, the figures come just a week after the Nationwide said house prices rose for the eighth month in a row.

According to the Nationwide, house prices rose by 0.4% in December compared with November, taking the average cost of a home to £162,103.

The Nationwide added that during 2009, house prices were up by 5.9%, recovering from the severe falls experienced in 2008 and that despite the recession, the past decade was the strongest on record for house prices.

In related news, the Bank of England recently revealed that the number of mortgages approved for house purchases rose for the twelfth consecutive month in November.

Mortgage approvals for house purchases grew to 60,518 in November, up from the 57,718 in October and represented the highest level since March 2008.