During the month of June house prices increased by 0.6 per cent, which is the fifth consecutive monthly rise taking the average house price to £167,984, according to the latest Halifax House Price Index.
House prices in the second quarter of 2013 were 2.1 per cent higher than in the first quarter of the year.
As a result, house price growth between these two quarters edged above the 1-2 per cent range that it had been in throughout the preceding five months. This was the biggest increase on this measure since January 2010 when it was 2.9 per cent.
Prices in the second quarter were 3.7 per cent higher than in the same three months a year earlier – the biggest increase in this annual measure since August 2010 (4.6 per cent).
Housing activity is also picking up as the number of mortgage approvals for house purchases, which is a leading indicator of completed house sales, increased by 7 per cent between April and May to 58,200; the highest monthly level since December 2009.
Housing supply conditions remain tight as the stock of unsold properties is relatively low and was 5 per cent lower on an annual basis in May 2013, according to the latest figures from RICS.
Martin Ellis, housing economist at Halifax, said: “House prices continue to rise steadily. Improved confidence in both the housing market and the economy, combined with a shortage of properties available for sale, appear to be pushing up house prices.
“The Funding for Lending Scheme is also likely to be boosting the market by helping to reduce mortgage rates. There are also early indications that the Help to Buy equity loan scheme may be stimulating demand.
“Despite these signs of improvement in the market, the still subdued economic background and weak income growth are expected to remain significant constraints on housing demand and activity during the second half of 2013.”
