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House prices rise 6.2%

House prices rise 6.2%

Category: Mortgages

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

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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.

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