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House prices register annual rise

House prices register annual rise

Category: Mortgages

Updated: 07/01/2010
First Published: 07/01/2010

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 It is now over 6 months old so the content may be out of date.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 now higher than they were 12 months ago, after values rose for the sixth month in succession during December.

Prices increased by one per cent in December, slightly below the rate of 1.2 per cent growth for the preceding five months, figures from the Halifax house price index show.

The average UK property is now worth £169,042.

House prices gained real momentum in the final two thirds of 2009, having increased by 9.4 per cent from a low in April. In monetary terms, the average property has gained £14,552 in value over the period.

Between August 2007 and April 2009, house prices fell by almost a quarter (23 per cent).

"The significant cut in interest rates following the worldwide financial upheaval in the autumn of 2008 has markedly reduced the burden of servicing a mortgage for many households," said Martin Ellis, housing economist.

"This has helped to stimulate housing demand, albeit from a low base. The recent improvement in the labour market, highlighted by increasing numbers of people in employment in both September and October, has also supported housing demand."

Further research has revealed that the proportion of disposable earnings devoted to mortgage payments by first time buyers on national earnings has almost halved from a peak of 50 per cent in June 2007 to 27 per cent in November 2009.

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