Halifax: House Prices Rose by 5.6% in 2009

House prices rose by 5.6% in 2009, according to Halifax, as cash rich buyers taking advantage of low mortgage rates dominated the market.The average house price in December 2009 was almost £9,000 more than in the same month in 2008 on the Halifax index.

However, Halifax's figure given for annual house price inflation was a far lower 1.1%, as it compares quarterly year-on-year figures for its calculation.Both figures show a remarkable turnaround from the 17.7% annual falls seen in April.This has come as those able to raise deposits of at least 25%, and in many cases 40%, have taken advantage of low mortgage interest rates, some under 2.5%.

In contrast, borrowers unable to raise 25% deposits are looking at rates of 5% or more.
Halifax says that the average home is now worth £169,042 - £14,500, or 9.4%, more than the recent low seen in April.