New figures show house prices are rising

New figures show a boost to the property market with house prices on the rise.

The Halifax house price index for February show that house prices increased by 0.5pc in February following a small fall of 0.3pc in January.

The average house price was £163,600.

House prices in the three months from December 2012 to February 2013 were 1.9pc higher than in the previous three months.

Prices in the three months to February 2013 were also 1.9pc higher than in the same three months a year ago.

Housing economist Martin Ellis said: “The housing market continued to provide evidence of improvement in February. Prices in the three months to February were 1.9pc higher than in the previous three months. This was the third successive increase in this measure of the underlying trend. Prices were also 1.9pc higher than in the same period a year ago.

“House sales also continue on a modest upward trend. This increase in both house prices and activity in recent months is consistent with evidence of some improvement in market conditions. The more than half a million increase in the number of people in employment over the past year is likely to have been a factor supporting housing demand.

“We expect to see a national increase in house prices over the course of 2013. Weak income growth and continuing below-trend economic growth, however, are likely to remain significant constraints on housing demand.”