UK house prices rise in six-year high HOUSE prices increased across almost a third of Britain last month in the biggest uplift seen in almost six years. Prices grew in 31 per cent of postcodes in England and Wales, marking the highest proportion recorded since September 2007, as improved market activity spread beyond London, property analysts Hometrack found. House prices increased by 0.4 per cent in June, matching the growth seen in May which was the highest increase seen in a single month since June 2007. Just 3.1 per cent of postcodes saw house prices fall, representing the smallest share seen for three years. Hometrack expects the upswing in prices to continue in the coming months, although the rate of increase is likely to slow as demand drifts off over the summer holiday period. London recorded the strongest growth in June, with prices rising by 0.9 per cent for the second month in a row. Prices increased by 0.4 per cent in East Anglia, 0.3 per cent in the South East and 0.2 per cent in the South West and West Midlands. They also rose by 0.1 per cent in the West Midlands. Prices were flat during the month in Wales and, showing a continued divide between the South and the North, they were also unchanged in the North East, North West, and Yorkshire and Humberside. A string of recent studies have pointed to a pick-up in the housing market in recent months, with many reporting that first-time buyers are finding it easier to get a mortgage deal and sellers are growing more confident about sticking close to asking prices. The Council of Mortgage Lenders (CML) recently reported that May was its best month for lending since 2008. Hometrack said that growth in demand from buyers combined with improved market confidence and an ongoing shortage of houses for sale are all pushing up prices. The recent boost in first-time buyer numbers is adding to the shortage of supply, because these buyers are not bringing any homes to market to sell. Richard Donnell, director of research at Hometrack, said there is a possibility that improved market conditions will lead to more "over-priced" houses coming to market. This would actually have the effect of dampening house price growth because buyers are still "price sensitive" and would be likely to dig their heels in, he said. The Hometrack study asks estate agents and surveyors about achieved prices.