House prices increased by 2.4% in February, the eleventh monthly increase in the past twelve months. The average price is, however, still 10% below the August 2007 peak.

Housing activity is on an upward trend. Home sales increased for the ninth successive month in January to 103,440; 30% higher than in January 2013. The number of mortgage approvals for house purchases – a leading indicator of completed house sales – was 11% higher in the three months to January than in the previous three months and 42% higher than in January last year.

Market conditions adding upward pressure on prices. While new buyer enquiries eased in January, this has been accompanied by a decline in the number of homeowners providing instructions to put their property on the market. However, latest housebuilding figures show signs of improvement which could help to bring demand and supply into better balance. The number of housing starts in England in 2013 increased by 24% to 98,610 from a year earlier.

Commenting, Stephen Noakes, Mortgages Director, said:

“House prices in the three months to February were 2.1% higher than in the three months to November. The annual rate of increase rose again with prices in the three months to February 7.9% higher than in the same three months last year.

full story via House prices still 10% below 2007 peak | Financial Reporter.