House prices rose by 0.6% in October, according to the Land Registry House Price Index.
The Land Registry House Price Index has recorded its fifth consecutive month of rising house prices with the average house in England and Wales now costing £159,546.
Average house prices are still 3.4% lower than twelve months ago, however, with all regions in England and Wales registering annual declines in property values.
The West Midland experienced the biggest annual price fall with a 6.3% reduction in property values, whereas house prices in the North West rose by 1.9% in October.
Homeowners in Wales also fared badly as their houses fell by 2.3% in October.
Activity within the housing market is showing an increase compared to this time last year, however transaction volumes remain relatively low which still indicates weakness in the property market.
Commenting on the latest Land Registry Figures published today, Oliver Gilmartin RICS senior economist predicts that: “House prices are set to rise further in the coming months supported by an ongoing shortage of property listings relative to demand.
“That said, renewed challenges are set to face the market in 2010 particularly in some regions where unemployment will remain elevated. In particular, the ending of the extended zero band on stamp duty in the new year could have a disproportional impact on those markets outside London and the South East.”