Halifax reports 1.2% rise in house prices in October
According to the Halifax, house prices rose 1.2% in October which is the fourth consecutive month that prices have gained.
The lender said house prices are 4.7% lower when compared with October last year and the average price of a house is now £165,528.
In comparison, last week, the Nationwide said house prices were up by 0.4% in October and 2% higher than in October last year – the first annual rise since March 2008.
The Nationwide puts the average cost of a property to £162,038.
Meanwhile, the Halifax said prices were rising as a result of increased demand and fewer houses up for sale.
Martin Ellis, the Halifax’s housing economist, comments: “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.”
According to the Halifax house price index, prices are down 17% on the August 2007 peak of £199,500, compared to 22.5% in April 2009.
However, the Halifax cautions that the current momentum is unlikely to continue, since more homes are being put up for sale and this will, in turn, result in a slowdown in the demand for homes.
Yesterday, housing intelligence company, Hometrack, said the housing market is likely to slow since the rise in potential buyers seen recently is dwindling on the back of higher prices.
Many housing experts such as Ernst & Young ITEM Club, Jones Lang La Salle and Capital Economics have all warned of a potential double dip.