(RTTNews) - House prices in the UK rose 1.2% month-on-month in October after rising 1.5% in September, the Lloyds Banking Group Plc’s Halifax division said Tuesday. It was the fourth consecutive monthly increase. On an annual basis, prices were down 4.7%, slower than the 7.4% decline in the previous month. Prices in the three months to October were 2.9% higher compared to the previous three months.

Prices are now 7.1% higher than six months ago when prices reached a trough in April. Nationally, house prices have risen by 2.9% since the end of 2008.

“Demand for houses has risen in recent months due to the very low level of interest rates, the decline in property prices since the summer of 2007 and a pick-up in consumer confidence on the back of better economic news,” housing economist Martin Ellis said.

Higher demand and supply shortages have pushed up house prices, Halifax said. Lower interest rates have reduced mortgage payments, it added.

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