House prices up 1.4% in November

8 December 2009 | By Natalie Thomas

The average house price was up by 4.2% - £6,803 in the first eleven months of 2009, taking it to £167,664.

Prices over the period 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.

Prices have increased by 8.5% since reaching a trough in April 2009; an increase in the average price of £13,174. This follows a decline of 23% between August 2007 and April 2009.

But house prices in November were 1.6% lower on an annual basis. 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 -17.7% in April.  

Housing market activity continues to pick up.  Completed house sales in England and Wales were 11% higher on an annual basis in August, according to the latest Land Registry figures. 

Martin Ellis, housing economist at Halifax, says: “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. Further ahead, the prospects for the market will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale. Overall, our view is that house prices will be flat during 2010.”

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