HOUSE prices in Waltham Forest are on the up, according to the latest figures.

Statistics released by Nationwide building society indicate the market in the borough is beginning to recover following a long period of continued decline.

According to the figures, the average house price for the borough rose by 0.6 in December and by two per cent over the past 12 months to £243,788.

This is in stark contrast to statistics earlier in the year, as the average house price fell to as low as £195,000 in May.

Estate agents in the area said they are starting to notice the change as confidence returns to the housing market.

Barry Tonks, of the Highams Park branch of W J Meade estate agents, said: “We are seeing a difference and I think the market is going to improve over the next year.

“People have held on and waited to see what would happen to the housing market before moving.

“But now they have reached the point where they are starting to buy or sell their houses because they feel it has been as low as it can get - people can only wait so long.”

“The increase in prices should help to boost confidence further and we will see more people buying and selling.

“It’s the feel-good factor.”

Mr Tonks, who has worked in the industry for 30 years, said a variety of factors have contributed to the increase, including people living in rented accommodation opting to buy and a general shortage of property for sale in the area.

“We have got a shortage of property at the moment, which is obviously helping to drive prices up,” he added.

“A lot of people that have been renting are coming back into the housing market because they’re realising their money is gone and they have no investment to show for it.”

The upward trend has been observed throughout London, with the region seeing larger increases in house prices during the last quarter of 2009 than any other area in the UK.

Martin Gahbauer, chief economist for Nationwide, said: “Greater London was the best performing region in the quarter, as prices rose by 3.4 per cent.

“This increase pushed the annual rate of change up from -1.9 per cent to seven per cent, making London the best performing region last year.”