House prices rise 6.2% - Mortgages - News - Moneyfacts


House prices rise 6.2%

House prices rise 6.2%

Category: Mortgages

Updated: 03/10/2013
First Published: 03/10/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

House prices are rising at their fastest pace for more than three years, according to Halifax.

The bank's latest data reveals prices in the three months to September were 6.2% higher than a year earlier. This is the highest rate of price inflation since June 2010.

On a monthly basis, prices were shown to be 0.3% higher, bringing the average price of a UK home to £170,733.

Halifax economist Martin Ellis attributed higher prices to the fact that in many parts of the country demand for housing is outpacing supply.

"Demand has increased against a background of low interest rates and higher consumer confidence underpinned by signs that the economy has begun a sustainable recovery," he said.

However, in a sign that more homes are now coming onto the market, RICS figures show that the number of homeowners providing instruction to put their property up for sale rose for the seventh successive month in August.

"The recent strengthening in house prices is increasing the amount of equity that many homeowners have in their home, enabling more to put their property on the market for sale. Levels of housebuilding are also increasing, albeit from a very low base," said Mr Ellis.

Last week Nationwide Building Society revealed house prices had increased 5% in September when compared to the same month last year.

What Next?

Compare the best mortgage deals with our whole of market search

Speak with an impartial Which? mortgage adviser for help on choosing the right mortgage for you

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!