UK house prices
increase in October

UK house prices rose 1.2% during October - with values 7.1% higher than six months ago - according to the Halifax House Price Index.

October's increase was the fourth consecutive monthly gain. On an annual basis, prices were 4.7% lower than October 2008.

Halifax said higher demand and a shortage of properties coming onto the market had driven up prices.

But Martin Ellis, Halifax housing economist, said: "There are some indications that more people are deciding to put their homes on the market, encouraged by the recent improvement in market conditions.

"A continuation of this trend could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance."

There are also signs that the rate at which potential new buyers are registering with estate agents is beginning to slow as property prices rise.

The average home now costs £165,528, 2.9% more than it did at the end of last year. The figures from Halifax are broadly in line with ones released by Nationwide last week.

These showed that prices had risen for the sixth month in a row during October, although at 0.4% the monthly rate of gain was slowing.

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