House prices in the UK recorded another rise in September, the third consecutive monthly increase and the fifth time prices have improved nationally so far this year.
Property values recorded a rise of 1.6 per cent in September, meaning prices increased by 2.8 per cent during the third quarter of the year. It is the first quarterly rise for two years and the biggest since the first three months of 2007, when an improvement of 2.9 per cent was recorded, according to the Halifax House Price Index.
The average price of property in the UK finished September at £163,533 – 1.7 per cent higher than at the start of 2009. Since values reached a trough in April of this year, prices have surged by 5.9 per cent, increasing by just over nine per cent.
"The combination of increased demand and a low level of properties available for sale have pushed up house prices in recent months," said Martin Ellis, housing economist at Halifax.
Increased affordability has also helped prices rise, as figures show that mortgage repayments for a typical new borrower have fallen from a peak of 48 per cent of disposable income in the third quarter of 2007 to 30 per cent 12 months later.
"The marked improvement in affordability due to the reduction in both property prices and interest rates since mid 2007 has been a key factor in stimulating higher demand," added Mr. Ellis.
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