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House prices rise for sixth consecutive month

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UK house prices were 1.1% higher in December than the previous year, marking the sixth consecutive monthly rise in property value and the first annual rise in almost two years, Halifax has revealed.

Halifax claim the average UK home is now worth £169,042, while the Nationwide said that house prices had risen by 5.9% in 2009, with the average home similarly worth £162,103, in its house price index published last week.

Demand was stimulated by interest rate cuts, which meant those who could raise a deposit of at least 25%, in some cases up to 40%, could take advantage of low mortgage rates, such as 2.5%.

The Halifax calculates its annual price change by taking an average of the past three months, in order to smooth out any short-term price fluctuations. The change in average prices shows that the typical price in December 2009 was £169,042, compared with £160,070 in December 2008.

However, the group predicts that property values will be flat in 2010 owing to the economy’s pessimistic outlook.

Halifax Housing Economist, Martin Ellis, said: “The prospects for the market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale.”

Further reading in the Gazette.

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Written by Andrew Hodges

January 10, 2010 at 11:00 pm

Posted in Comment, LinkedIn

Tagged with , ,

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