| Halifax says U.K. house prices rise by 1.2% |
|
03/11/2009 18:31 (17 Day 11:31 minutes ago) | |||||
|
The FINANCIAL -- According to mortgage lender Halifax's monthly index, that was published on November 3, British house prices rose 1.2 percent in October. Halifax says that it is the fourth monthly increase in a row.
House prices were 1.5 percent down in October compared with a year ago, the smallest annual fall since March 2008. Halifax said it expected the annual price change to turn positive in the coming months, Reuters reported. In the three months to October compared with a year ago, prices were 4.7 percent lower -- the smallest fall on that measure since May 2008 -- leaving the average price of a home at 165,528 pounds ($269,500).
The Halifax data showed a stronger monthly increase than rival mortgage lender Nationwide, which said prices rose 0.4 percent last month, according to the same source. However, house prices on the Nationwide measure have now risen for six consecutive months compared to only four on Halifax's gauge.
Martin Ellis, housing economist at Halifax, said: "Demand for houses has risen in recent months due to the very low level of interest rates, the decline in property prices since the summer of 2007, and a pick-up in consumer confidence on the back of better economic news, Guardian informs. "Higher demand has combined with a low level of properties available for sale to result in rising house prices over the past few months," he added.
Ellis said that growing numbers of people putting their properties on the market could put a stop to further price rises, according to the same source. "There are some indications that more people are deciding to put their homes on the market encouraged by the recent improvement in market conditions. A continuation of this trend could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance," he said.
House sales seem likely to continue rising in the coming months, BBC reported. Figures published by the Bank of England last week showed that the number of mortgages approved but not yet lent - a key indicator of future sales - rose by 3,000 in September to 56,000.
According to the same source, the figures suggest that if increased demand for home loans is combined with a continued lack of choice for buyers, then house prices may keep on rising too.
|
|
|
