Property prices continue to rise

Latest figures show gains over the sixth consecutive month

House prices rose again during November last year, taking the average house price in the UK to almost the same level as they were a year ago. Prices gained 0.9 per cent according to the latest government figures, which is the sixth consecutive month that Land Registry figures have reported an increase.

Other house price indices have been showing rises for longer than that, but the Land Registry measure is regarded as being the last to reflect changes in prices as it is based on sale completions.

The November rise of 0.9 per cent was higher than the 0.6 per cent rise in October, and the same as the figure for September.

The average house price in England and Wales is now £161,554, according to the Land Registry.

The rise means that, averaged across the UK, house prices now stand just 0.3 per cent lower than they did a year ago.

Prices have recovered most strongly in London, where property is now 3.5 per cent more valuable than a year ago following a 2 per cent rise in November.

There were also inconsistencies in the types of properties that are selling for higher prices. The biggest increases have been for detached family homes, which are in the greatest demand. Prices of these properties were 1.6 per cent higher last month than in November last year.

However, semi-detached houses fell in value by 0.1per cent, while terraced homes were 0.3 per cent cheaper.

Property transactions also picked up, with sales more than 5,000 higher per month between June and September than in the same period a year ago. But transactions are historically still at a low level. Price drops in many regions of the UK and in particular London and the South East are easing, and in some parts of London even increasing as demand overtakes supply - particularly in the premium, higher end of the market.

The most promising part of the report is the number of homes being sold, which although still up to half their pre-credit crunch levels, are beginning to increase again.

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