7 Jan

Research shows house price rise in December

Research shows house price rise in December

House prices increased by one per cent between November and December last year, the latest figures from Halifax have revealed.

According to the financial institution's monthly house price index, this is the sixth consecutive month that property values have risen.

The market hit an all-time low in April 2009, when the average price of a home stood at £154,490, in the subsequent eight months, they have recorded a 9.4 per cent increase, reaching their current level of £169,042.

Martin Ellis, housing economist at Halifax, explained that the substantial cut in interest rates coupled with the recent improvement in labour markets has helped boost demand in the sector.

However, he noted that the low level of supply has placed upward pressure on house prices.

"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," Mr Ellis said.

At the end of December, research group Hometrack predicted that property prices in the UK will fall by one per cent during 2010.ADNFCR-1222-ID-19545793-ADNFCR

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