Another good month for house prices

October turned out to be another good month for house prices, with a 1.2% rise reported by Halifax.

This is the fourth monthly rise in average house prices as reported by Halifax. The average price of a house now stands at £165,528. This remains 4.7% lower than October last year.

The average UK house price has risen 2.9% since the end of 2008. They are now 7.1% higher than six months ago when prices reached a low in April 2009.

It appears to be a combination of factors driving up house prices. The slightly improved availability of mortgages is working together with a lack of supply in terms of property for sale. These factors could both continue to push up house prices over the next few months.

Higher house prices are generally bad news for first time buyers, making it even more of a challenge to get a foot on the property ladder.

Rising house prices do however result in an improved 'feel good factor' for existing property owners. Our houses are often are most valuable assets, so being told that the value of that asset is increasing each month can lead to greater consumer confidence; something our fragile economy desperately needs right now.