House prices have risen by 6.6 per cent over the last 12 months, according to the latest Halifax house price survey.

The lender said this was the fastest rate of increase since October 2007 but also highlighted the fact that prices have slowed down in recent months.

The average price of a property in the UK now stands at £168,202, with prices falling 0.1 per cent in April. But in Oxford, sales are continuing to rise with the Cowley office of agent Connells recordintg its most successful sales week for two years at the end of April. Bosses said buyers were responding to improving market conditions and greater options in terms of mortgage finance. Branch manager Stewart Caldwell Smith said: "It’s clear people are fed up of putting their lives on hold." More sellers are also coming to the market with Connells average stock per branch has up by 12 per cent and instructions rising by 26 per cent compared to April last year. Mr Caldwell Smith added: “The fact that both house prices and sales have increased at a time when we have a greater supply of houses on the market discredits economists who say the only reason prices increase is because of a lack of supply. “Connells sales at the end of April show there are many more factors involved in predicting house market activity and the desire to buy and own a property, especially in the UK market, cannot be disregarded.”

Halifax housing economist Martin Ellis said: "The underlying rate of house price growth has slowed in recent months following the relatively sharp rebound, albeit from a low base, in the second half of 2009.

"New sales instructions have risen, helping to push up the stock of unsold properties in recent months.

"As a result, the imbalance between supply and demand is easing somewhat."

The Halifax added prices would be flat over the course of 2010.