House prices up 7.5% in 2013, Halifax says

The year-on-year increase was close to a 7.7% rise recorded in November, which was the highest increase seen in six years (see our House Buying guide for 50 top tips).

Last week, Nationwide reported house prices were up by 8.4% over 2013 across the UK (see the House prices up 8.4% MSE News story).

On a monthly basis, Halifax says prices fell by 0.6% in December, marking the first fall in 11 months and taking the average house price to £173,467.

But on a quarterly basis, which Halifax says is generally a more reliable indication of the underlying trend, prices rose by 1.9%.

A lack of homes on the market is one of the main factors which housing market experts say have been pushing up house prices. Demand from would-be buyers has been increasing in recent months amid Government schemes such as Help to Buy.

Halifax predicts house prices will rise this year at a similar pace to 2013, with an increase of between 4-8% across the UK over 2014.