DCLG: House prices up 1.7% in November

The statistics, based on mortgage completions during November, also reveal that house prices are up 0.6% year on year.

The mix-adjusted average house price in the UK stood at £200,454 in November 2009.
Annual average house prices paid by first-time buyers in November 2009 were 3.9% higher than the year before, but average house prices paid by former owner-occupiers were 0.7% lower.

Catherine Penman, head of research at property consultancy, Carter Jonas, said: "The property market had an astonishing run in the second half of 2009 due to affordability and the lack of supply but the mini bull run, confirmed once again in these latest figures, is now almost certainly over.

"Despite the property market's position, we must avoid being complacent, as its fate in 2010 will be far more closely tied to what happens in the broader economy. And while we are told almost daily that the economy will soon exit recession, we are not on firm ground yet and may not be for some time.

"The above trend rise in prices for first-time buyers could prove to be problematic if it continues. If prices at the lower end of the market rise disproportionately, the market as a whole will suffer.

"The market overall will remain fairly static throughout 2010 although there will be isolated bubbles of activity and outperformance."