House prices accelerate again says Halifax

 
houses in English street House prices are still accelerating, but slowed last month, said the Halifax

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House price inflation has increased once again, according to figures from the UK's biggest mortgage lender.

The Halifax said prices rose by 8.7% in the year to March, the highest inflation rate since October 2007.

It put the increase down to an improving economy, growth in employment, rising consumer confidence and low interest rates.

However measured on a monthly basis, prices fell by 1.1% in March, compared with February.

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The dip in prices in March reported by the Halifax adds to some tentative signs that that a little bit of froth may be coming off the housing market”

End Quote Howard Archer Chief UK Economist, IHS Global Insight

That was only the third monthly decline in the last fifteen months, and means the average price of a house in the UK has actually fallen, to £178,249.

However prices were still up over the medium term.

In the first quarter of 2014 prices rose by 2.3%, compared to the last quarter of 2013.

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UK house prices

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'Froth'

Along with evidence from the Nationwide Building Society this week, the figures suggest that the rate of house price growth has recently slowed.

The Nationwide reported that price rises had "moderated" over the last couple of months.

"The dip in prices in March reported by the Halifax adds to some tentative signs that that a little bit of froth may be coming off the housing market - although it is still robust," said Howard Archer, chief UK and European Economist with IHS Global Insight.

However, over the year as a whole the Nationwide said that prices had risen by 9.5%.

It also said that the gap between prices in London and the rest of the UK was now the widest it has ever been, with prices of homes in the capital twice those in the rest of the country.

This week the Bank of England reported a sharp slow-down in the number of mortgages being taken out in February.

 

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  • rate this
    +3

    Comment number 579.

    Increasing house prices will always be good news for property owners, estate agents and solicitors; unfortunately, until earnings increase at the same pace, these groups will remain the only beneficiaries.

  • rate this
    +5

    Comment number 387.

    What is ridiculous is that a 4 bed house I sold in 2000 in good condition went for £165K and the small 2 bed one I'm selling 14yrs later has sold for £160K. The two properties are in the same town, albeit with good train and road links.

    I would not like to be starting on the property ladder or renting now especially with the industry of buy to lets that plague our country.

  • rate this
    +5

    Comment number 340.

    Interesting to see so many who are holding off buying because they expect a crash criticising those that are speculating prices will rise!

    Speculation goes both ways.

  • rate this
    +4

    Comment number 296.

    @292.countryboy
    'if people can still afford to buy them then house prices will rise its when only a few can afford to buy the problems start .'
    The problems will start when intrest rates rise and those that have stretched themselves on their mortgages can't afford the repayments.

  • rate this
    +4

    Comment number 231.

    This is utter madness.
    The government are wrong to have interfered in the housing market.
    They are helping to create yet another housing bubble.
    Why do politicians never learn from their previous mistakes?
    Interest rates need to rise now, and the help to buy schemes scrapped.
    Let a free market stabilise
    I am a Tory voter, but GO and DC have got this very wrong.

 

Comments 5 of 14

 

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