UK house prices rose 1.2% in October, marking the fourth consecutive monthly increase, according to the Halifax.

Since the beginning of the year, house prices have risen by 2.9%, and October’s rise was double that predicted by analysts. However, the average house price was £165,528, which is still 4.7% lower than October last year. Prices are now 7.1% higher than in April, when they had reached their trough following a 23% fall since the previous August.

Martin Ellis, the Halifax’s housing economist, warned that the recent rise in house prices was mainly due to demand for property outstripping supply. He added that low interest rates, reduced property prices since the summer of 2007 and a lack of available property had all contributed to rising demand for homes.

House sales seem likely to continue rising in the coming months.

Halifax’s figures contrast with those of rival mortgage lender Nationwide, which reported just a 0.4% rise in house prices this month. However, Nationwide has reported an increase in prices for the last seven months.

Figures published by the Bank of England last week showed that mortgages approved but not yet lent, a key indicator of future sales, had risen by 3,000 in September to 56,000. This was their highest level since March 2008.

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