House prices rise for fifth month in a row

Tuesday 8th December 2009

House prices have risen for the fifth consecutive month according to the Halifax house price index (HPI) out today.

Prices have risen by 4.2 per cent, or £6,803, over the first 11 months of 2009, with prices rising by 1.4 per cent in November according to the high street bank.

The average price of a home is now £167,664 according to the Halifax. Prices over the period September to November were 3.7 per cent higher than in the previous three months; the biggest increase on a three monthly basis since November 2006.

On an annual basis, house prices in November were 1.6 per cent lower. The annual rate of change, measured by the average for the latest three months against the same period a year earlier, has improved significantly from a low of minus 17.7 per cent in April, the Halifax said today.

Martin Ellis, housing economist, said: "The recovery in house prices since the spring has been driven by increased demand for property, largely due to the improvement in affordability for existing homeowners and first-time buyers who can raise the necessary deposit.

"Somewhat higher demand has combined with a low level of properties available for sale to push up prices."

The Halifax said in a statement that housing market prices had been buoyed by the ratio of house sales to the stock of unsold properties. The Royal Institution of Chartered Surveyors (Rics) has said they expect this more positive trend to continue for the beleaguered housing market.

Simon Rubinsohn, Rics chief economist said: "While some measures of house prices appear to be suggesting a slackening in momentum, the latest figures from Halifax point towards a more buoyant picture.

"Despite the probable ending of the extended zero rate band for stamp duty at the end of the year, the likelihood is that prices will continue to rise in the early part of 2010. Although the fresh supply of property is beginning to pick up, it is continuing to lag behind the increase in buyer interest which suggests that, at least in the near term, the market will continue to tighten."

Related News

<< Back To News Listings

News Article Search