Its November house price index showed that prices increased by 1.4%. The cost of the average UK house is now £167,664, a £6,803 or 4.2% rise from October.
Although house prices in November were 1.6% lower on an annual basis, prices from the period from September to November were 3.7% higher than in the previous three months. This is the biggest increase on a three monthly basis since November 2006.
Martin Ellis, economist at Halifax, 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.”
Halifax also predicted that house prices were likely to be flat over the course of 2010 but warned that further ahead, the prospects for the market will depend on how the economy evolves and whether there is a significant increase in the supply of properties for sale.
