Supply shortage helps boost UK house prices

UK house prices rose for the fifth month in a row during November as the market continued to be boosted by a shortage of homes for sale, figures showed today.

The average cost of a home rose by 1.4% during the month to stand at £167,664 (€184,500), the highest level since October 2008, according to Halifax.

But the group warned that the prospects for the market going forward depended on the state of the economy and whether there was a significant increase in the number of homes put up for sale.

It added that it expects house prices to remain flat during 2010.