House prices 'rise by 1.1 per cent'
House prices 'rise by 1.1 per cent'
Friday 8th January 2010
House prices for December rose by 1.1 per cent compared to the same time one year ago, new figures show.It is the first annual rise since March 2008 and means that house prices have risen by 9.4 per cent since reaching a low in April 2009.
This increase follows a decline of 23 per cent between August 2007 and April 2009.
The data, which comes from the Halifax House Price index, also shows a one per cent rise between December and November, which is the sixth consecutive monthly increase. Halifax measures its annual rate of change by taking an average for the latest three months.
According to the index the average house price is now £169,042.
The high demand for houses being met by a limited supply is one major factor for the increase in prices, but it is not the only one. Halifax noted that the cut in interest rates had greatly reduced the cost of servicing a mortgage for many households.
An improving labour market has also boosted housing demand, the lender said. November saw a drop in the number of people claiming unemployment benefit for the first time since February 2008.
Martin Ellis, Halifax housing economist, said: "The prospects for the market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale. Overall, our current view is that house prices will be flat during 2010."
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