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.”
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