House prices continuing to rise
Updated on 10 November 2009
House prices rose for the sixth month in a row during September, jumping by 1.2%, Government figures have shown.
The rise pushed the average cost of a UK home up to £199,303, a level last seen in November 2008, according to the Department of Communities and Local Government.
The annual rate at which prices are falling also eased for the sixth consecutive month to 4.1%, the lowest level for 13 months.
The figures came as the Royal Institution of Chartered Surveyors (RICS) said house prices continued to rise during October despite an increase in the number of homes being put up for sale.
The group said 34% more surveyors reported seeing price rises rather than price falls during the month, the highest level since December 2006.
The increase reported by RICS came despite evidence that sellers are beginning to return to the market, with a balance of 15% of surveyors reporting a rise in instructions, up from just 5% in September.
The group said the number of people looking to sell their home rose in all regions of the UK for the first time since the credit crunch struck.
But despite this, the average number of unsold properties chartered surveyor estate agents had on their books remained broadly unchanged for the third consecutive month at 64.
Economists have attributed the recent strength of the housing market to a shortage of homes for sale and they have warned that, as more properties are put on to the market, prices could start to fall again.
But surveyors expect house prices to continue rising over the coming three months, with 31% more expecting a rise rather than a fall in the value of property, up from a balance of 25% in September.
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