House prices post 6th successive monthly increase marking a 1.1% rise for 2009 - Halifax

UK house prices rose for the sixth successive month with a 1% increase in December, according to Halifax Building Society. The British mortgage lender’s monthly report on the housing market revealed an improvement over the course of 2009, with the United Kingdom’s average house price ending the year up 1.1% on an annual basis at £169,042.

“The significant cut in interest rates following the worldwide financial upheaval in the autumn of 2008 has markedly reduced the burden of servicing a mortgage for many households. This has helped to stimulate housing demand, albeit from a low base”, Halifax housing economist Martin Ellis commented, “The prospects for the market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale”.

The fourth quarter revealed the largest quarterly increase in house prices since the end of 2006, with a 3.5% increase in the final three months of 2009. Furthermore the average house price has increased by £14,552 from April’s low, reflecting a 9.4% recovery following a 23% decline from the housing market’s peak in August 2007.

The Halifax said that recent improvements in employment also supported housing demand. The mortgage lender pointed to the latest Land Registry figures from September, which revealed an 11% annual increase in completed house sales.

According to the Halifax report, the signs of improvement are encouraging more homeowners to put their property up for sale, however, new supply is still not keeping up with the pace of rising demand.  http://www.proactiveinvestors.co.uk/companies/news/11933/house-prices-post-6th-successive-monthly-increase-marking-a-11-rise-for-2009-halifax-11933.html