PROPERTY prices have risen by 4.2 per cent in the last 12 months.

The typical UK property saw its value increase by 4.2 per cent in the 12 months leading up to February, according to the latest Halifax House Price Index.

It revealed the average house price was £196,649.

Chief economist at Halifax Martin Ellis believes the figures are generally positive and he pointed out that the market is well supported.

He said: "Over the past year, the average price of a home in the UK has increased by £4,390 to £196,649.

"While the housing market has slowed over the past six months, it is supported by sound economic fundamentals. "

He added: "Interest rate cuts by the Bank of England are also helping to underpin house prices."

The majority of analysts believe the base rate of interest will remain unchanged in March.