House prices rising at fastest rate since 2006

Halifax reported a one per cent gain in property values during the month, raising the cost of the average home to 169,042.

It pushed annual house price growth into positive territory for the first time since March 2008.

Prices were 1.1 per cent higher than they were a year ago, based on the Halifax measure of comparing average prices during the three months to the end of December with the same period a year earlier.

But if prices in December are compared with those in the same month of 2008, the cost of the average home has risen by 5.6 per cent during the past year.

The group said house prices were now 9.4 per cent or 14,552 higher than their low in April.

It added that, in the last quarter of 2009, the cost of property rose at its fastest rate since 2006.