House Prices Rise By 6.6% During The Last Year

House prices were 6.6% higher in April compared to twelve months ago, according to the latest Halifax House Price Index.

The annual rate of house price inflation rose by 6.6% with the average home now costing £168,202. This was the largest increase in the annual rate of change since October 2007.

The rate of house price increases does appear to be slowing, however, as prices were broadly flat in April, but rose by 1% in March this year.

The recent recovery in the property market from its low in April 2009, has encouraged more people to try and sell their home, which is allowing buyers to benefit from greater supply in the market.

Martin Ellis, housing economist with the Halifax, believe that the market will be flat during 2010, which is broadly in line with the views of the The Association of Mortgage Intermediaries.

At £168,202, the average house is still valued 16% below its peak in August 2007 so the property market does have some way to go to return to the levels seen before the credit crunch problems became apparent.