Annual house price growth rose during October, according to new research conducted by the Halifax.
The UK’s largest mortgage lender cited, ‘improving economic conditions,’ for the rise.
Data from the report shows that prices rose at an annual pace of 9.7% last month, up from the 8.6% recorded in September. In October, house prices increased by 1.1%, following a decline of 0.9% during the previous month.
This increase lifted the average price of a flat or house across the country up to £205,240, which is a new record high.
‘Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015,’ noted Martin Ellis, Halifax housing economist. 
‘Strengthening demand is filtering through into higher sales levels, although the ongoing shortage of supply is acting as a significant constraint on activity,’ he added. In addition, Ellis believes that demand is likely to continue to outstrip supply over the next few months, ‘maintaining upward pressure on house prices,’ as a result.
This chronic lack of supply has presented real problems for estate agent group Countrywide, who announced last night that its full-year profits were expected to drop as a result of fewer properties coming onto the market.
The company noted that, ‘the anticipated post-election recovery in residential transactions failed to materialise in any significant way.’
Just last week, rival mortgage lender Nationwide said that house prices increased by 3.9% in October, in comparison to the same period twelve months ago.
In addition, property values were up by 0.6% compared to September