The house price
revival is slowing down already, according to the latest figures
from the Halifax. Read on to find out more
House price growth was flat in October, according to figures
from Halifax released today. They say the average UK property
price remains at £168,210.
The report reveals that prices have risen annually by
3.9%. But this is well down on the 18.5% annual growth they
reported this time last year.
However, Halifax’s Martin Ellis says the signs for the
market are generally positive: “The overall pattern of price
movements over the past few months shows that the market has
strengthened compared with earlier in the year.”
Regionally, the North of England has seen the biggest
growth in prices over the last three months, with prices rising
by 6.6%. They’re down most in the South West and East
Midlands. Prices in both regions have fallen by 1.4% in the last
quarter.
The Bank of England’s August interest rate cut,
economic growth and low unemployment have all helped boost
demand for properties in recent months. Halifax said house
prices rose by 1.9% in August and 1.1% in September. The number
of mortgage approvals and estate agent activity also rose in
September. But the bank says that the market won’t start to
significantly lift off while prices remain as high as they are
now.
Last updated 04 November 2005
Will
we see an autumn house price boom?
There
is an alternative to Estate Agent High Street
prices:
New figures released yesterday
by the Nationwide show a sharp rise in the value of our
homes – so are we set to see another house price boom?
We take a look
October saw the sharpest house price rise for 15 months,
according to new figures from the Nationwide Building
Society. The average cost of a home increased by 1.3% and
now stands at £157,107 – up from £156,517 in
September. The sharp climb takes the annual rate of
increase to 3.3%.
The Nationwide survey provides further evidence
that the property market is picking up following
August’s cut in interest rates. Figures released earlier
this week by the Bank of England show that the number of
mortgages approved by banks and building societies rose to
their highest level for over a year during September. The
Halifax, meanwhile, has recorded a series of sharp price
rises in its property surveys.
The long-term view
Yet despite the latest signs of growth, the
Nationwide says it’s too early to say whether prices
will continue to rise over the coming months. Soaring
petrol and utility bills have lessened the chances of a
further interest rate cut and left our wallets feeling
stretched – which threatens to keep people off the
property ladder.
“It’s far too early to say that the market has
reached a turning point and that prices will continue to
accelerate,” a Nationwide spokesperson confirms.
“Affordability and personal debt levels will have to
adjust to more comfortable levels before we can expect any
widespread increase in demand and thus prices. The
evidence suggests a stabilisation in the market rather
than a turning point into a period of accelerating house
prices.”
