UK house prices rose by 2.4 per cent in February, the eleventh consecutive increase in a year, according to mortgage lender Halifax.

It takes the average price 10% below the pre-financial crisis August 2007 peak.

Over the past three months, and in terms of quarter-on-quarter rates of change, prices gained by 2.1%, keeping up the steady pace of rises of between 1.8% and 2.2% seen over the last nine months.

Versus the same three months of a year ago, prices stood 7.9% higher.

Stephen Noakes, Mortgages Director, cited several factors lying behind the gains, such as: "The improved economic outlook, unemployment falling faster than expected, improvements in consumer confidence and low interest rates."

However, the fact that people's earnings are failing to keep pace with consumer price inflation will constrain the pace of price gains. In the medium and long-term a revival in housebuilding will bring supply and demand for homes into balance, Noakes added.

AB

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