The average cost of a home rose by 1.2% during November as increased levels of activity in the market fed through to higher prices, new figures show.At the same time, the annual rate of property price growth rose for the third month in a row to 4.5% -
its highest level since May this year, according to Halifax.

The group said there had been a moderate pick-up in house prices during the past six months. The average cost of a property rose by 4.7% during the period, following modest falls earlier in the year. But it added that a slowdown in economic growth in the UK, coupled with the still relatively high house price-to-earnings ratio, was likely to act as a brake on strong price rises in the coming months.

November's 1.2% rise in prices follows static growth during October, and a riseof 1.1% in September. Despite the improvement in the year-on-year rate of growth, annual house price inflation is still well down on the 16.8% it was running at in November last year.

The average property in the UK now costs £170,086. The figures come days after Nationwide Building Society said house prices had remained unchanged during November, while it also reported an easing in the annual rate of growth to 2.4%, down from 3.3% for the year to the end of October.

Halifax attributed November's price rise to the higher levels of activity that had been seen in the market in previous months.It said its estate agents had seen a rise in sales recently, with the number of properties changing hands during October higher than during the same month of the previous year for the first time in 2005.

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