House prices highest since April 2008

House prices are now rising at 6.5% according to figures from the Nationwide Building Society.

The mortgage lender also claims that the average UK house and flat price has risen to £174,566 the highest since the April 2008.

The numbers suggest that the housing market is making a strong recovery since the recession.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK house prices rose by 0.6% in November taking the annual rate of increase to 6.5% - the strongest pace since July 2010, though prices are still around 6% below the all-time high recorded in late 2007.

“Activity in the housing market has picked up strongly in recent months. The number of mortgage approvals for house purchase reached 66,735 in September, 34% higher than the same period of 2012. A large part of the improvement can be attributed to further improvements in the labour market and the brighter economic outlook, which has helped to bolster sentiment amongst potential buyers.

“Policy measures aimed at keeping down the cost and improving the availability of credit are also playing an important role. Indeed, mortgage rates have declined significantly from the already low levels prevailing last year.

“For example, Bank of England data indicates that the interest rate on two year fixed rate mortgages for those with a 10% deposit has fallen from 5.6% to 4.4% over the past twelve months. For a buyer purchasing the typical UK home over 25 years, this equates to a reduction in monthly payments of around £110 (£1,320 per year) at the current average house price.”

House sales in the South West are at the highest level since 2008 and are expected to continue rising.

Earlier this month The Royal Institute of Chartered Surveyors (RICS) claimed that House sales in the South West are at the highest level since 2008 and are expected to continue rising.

RICS said that the increase is a sign that economic recovery is beginning to spread into the South West from London and the South East.

According to the research by RICS, 86% of Chartered surveyors are expecting to see a rise in house sales over the next three months.

According to figures released by the Office of National Statistics (ONS) in the 12 months to September 2013 UK house prices increased by 3.8%, up from a 3.7% increase in the 12 months to August 2013.

They also said the while house price growth remains stable across most of the UK, although prices in London are increasing faster than the UK average.