UK house prices continue to rise

British house prices rose by 1.1% in November compared with the previous month, and up 7.7% annually according to the Halifax.

The mortgage lender said strong demand for homes, combined with low levels of property on the market, had pushed up prices.

The average home in the UK is now said to be valued at £174,910.

However, the Halifax went on to say that the rate of house price growth would be “constrained” by squeezed household finances.

Martin Ellis, Halifax’s chief economist, said “We are also seeing signs of a revival in house building, which should help bring supply and demand into better balance and curb upward pressure on prices over the medium and longer terms,”.

According to the Halifax, the UK market had not returned to the levels seen during the housing boom; with the average price still 12% below the August 2007 peak.