The latest Halifax house price index reports that prices rose by 1.2 per cent in October, up from a 1.6 per cent increase in September and the fourth consecutive rise Halifax has recorded.
The average house price for October was £165,528, compared to £163,487 in September, £161,022 in August and £159,709 in July.
Prices in the three months to October were 2.9 per cert higher compared to the previous three months, and nationally the average house price has also risen 2.9 per cent since December 2008.
However, year-on-year house prices were 4.7 per cent lower in October.
According to Halifax higher demand and supply shortages have pushed up house prices. But it says housing market activity will remain very low going forward.
Halifax housing economist Martin Ellis says: “Demand for houses has risen in recent months due to the very low level of interest rates, the decline in property prices since the summer of 2007 and a pick-up in consumer confidence on the back of better economic news.
“There are some indications that more people are deciding to put their homes on the market, encouraged by the recent improvement in market conditions. A continuation of this trend could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance.”