Halifax figures show 1.4 per cent price rise

The lender’s index states prices are now just 1.6 per cent down on the previous year, following five consecutive monthly rises.

Halifax housing economist Martin Ellis 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.’

However, he warned that the future prospects for the market are uncertain. ‘Overall, our view is that house prices will be flat during 2010,’ he said.

Commenting on the figures, Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: ‘While some measures of house prices appear to be suggesting a slackening in momentum, the latest figures from Halifax point towards a more buoyant picture.

‘Despite the probable ending of the extended zero rate band for stamp duty at the end of the year, the likelihood is that prices will continue to rise in the early part of 2010. Although the fresh supply of property is beginning to pick up, it is continuing to lag behind the increase in buyer interest which suggests that, at least in the near term, the market will continue to tighten.’

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