The average house price in the UK has risen by almost £7,000 since the beginning of the year, after a fifth consecutive monthly increase in values.
House prices recorded a rise of 1.4 per cent in November, meaning the average price of a home in the UK finished the month at £167,664. The latest rise means that prices have shot up by 4.2 per cent in the year so far, with prices some £6,803 higher than they were at the turn of 2009, the Halifax house price index has revealed.
The period of improvement since the spring follows the trough in the market that was evident in April. Since then, property values have seen an 8.5 per cent improvement, equating to a gain of £13,174.
Prices over the three months from September to November were 3.7 per cent higher than in the previous three months, marking the biggest increase in a quarterly period since November 2006.
House prices in November were 1.6 per cent lower compared to the same time 12 months ago, although this margin is getting small with each monthly gain.
"The recovery in 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," said Martin Ellis, housing economist.
"Somewhat higher demand has combined with a low level of properties available for sale to push up prices. 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."
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