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.”
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