Report: UK house prices up 1.2 pct in October

UK's biggest mortgage lender says house prices up 1.2 pct in October

• On 8:48 am EST, Tuesday November 3, 2009

LONDON (AP) -- House prices in the U.K. rose 1.2 percent in October, the fourth consecutive monthly rise, the nation's leading mortgage lender said Tuesday.

Halifax said October's rise left average house prices 4.7 percent lower than a year ago, but 7.1 percent higher than the low point in April.

Last week, the Nationwide Building Society, the No. 3 mortgage lender, said average prices rose 0.4 percent in October, marking the sixth consecutive monthly rise. Nationwide said prices were 2 percent higher than a year earlier.

Both surveys are based on the company's own mortgage lending.

"Higher demand has combined with a low level of properties available for sale to result in rising house prices over the past few months," said Halifax economy Martin Ellis.

"There are some indications that more people are deciding to put their homes on the market, encouraged by the recent improvement in market conditions. A continuation of this trend could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance."