Nationwide’s November house price index shows property values are up 0.6 per cent on October but annually have now risen 6.5 per cent.
The price of an average property now stands at £174,566, up from £163,853 a year ago.
Nationwide’s chief economist Robert Gardner says the pace of change annually is the strongest it has been since July 2010, though prices are still 6 per cent below their peak in 2007.
The number of mortgage approvals for house purchase reached 66,735 in September, 34 per cent higher than the same period of 2012.
He says: “Activity in the housing market has picked up strongly in recent months. The number of mortgage approvals for house purchase reached 66,735 in September, 34 per cent higher than the same period of 2012. A large part of the improvement can be attributed to further improvements in the labour market and the brighter economic outlook, which has helped to bolster sentiment amongst potential buyers.”