Property price rise reported

Property values in the UK increased lat month, the new Halifax House Price Index has shown.

The study indicated that home values rose by 1.6 per cent during September, marking the third month in a row when property prices have gone up.

September was also the fifth month overall in 2009 that has seen a positive change in house prices, while there was a 2.8 per cent jump in prices during the third quarter of the year.

Average house prices are now at a similar level to midway through 2005, with a 5.9 per cent increase being noted since the low point of April 2009.

Martin Ellis, housing economist at Halifax, stated that the rise is the result of increased demand combining with low levels of available properties.

He said: "The marked improvement in affordability due to the reduction in both property prices and interest rates since mid-2007 has been a key factor in stimulating higher demand.

"Continuing increases in unemployment and low earnings growth are likely to constrain the rise in demand."

New Nationwide figures also pointed to a leap in house prices across the UK in the past three months.

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