House prices up 6.2% year-on-year in Q3!

House prices rose 6.2% year-on-year in the third quarter, according to the latest Halifax house price index.

Prices also rose 2.1% compared to the second quarter of 2013, leaving the average house price in the three months to September at £170,733. This figure is still 14% short of the August 2007 peak, despite eight consecutive months of house price inflation.

Halifax housing economist Martin Ellis says: “Housing demand has risen more quickly than supply in recent months, putting upward pressure on prices. Demand has increased against a background of low interest rates and higher consumer confidence.

“There are signs that supply is beginning to respond to the pick-up in demand, which if continued should help to constraint the upward pressure on prices.”