Prices increased for the fifth consecutive month in November, rising by 1.4% according to the Halifax.
This means the average house price has risen by 4.2% (£6,803) in the first 11 months of 2009.
Prices over the period from September to November were 3.7% higher than in the previous three months. This is the biggest increase on a three monthly basis since November 2006.
Prices have increased by 8.5% since reaching a trough in April 2009 an increase in the average price of £13,174. This follows a decline of 23% between August 2007 and April 2009.
House prices in November were 1.6% lower on an annual basis. The annual rate of change (measured by the average for the latest three months against the same period a year earlier) has improved significantly from a low of -17.7% in April.
Martin Ellis, housing economist, said: “The recovery in house prices since the spring has been driven by increased demand for property