Both major house price indices recorded rising prices last month, clawing back most if not all of the previous 12 months losses. Halifax recorded a rise of 1.4% in November, their fifth consecutive rise. However, prices still have a long way to go to reach pre credit crunch levels, as the recent gains only account for around a third of the overall loss. Martin Ellis, Halifax’s housing economist, said: "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." Nationwide found that prices rose by 0.5%, the same result as October, but puts the annual change in the black at 2.7%. The average UK house is now worth £167,664 according to Halifax and £162,764 according to Nationwide, a whopping £726 more than October.
House Prices Continue To Climb.