House prices rise again in September

Posted: 28 Sep 2006 10:06:18 GMT


            Property News - House prices rise again in September

House prices rose again by 1.3 per cent this month, raising the annual growth rate to 8.2 per cent, new figures show.

House prices rose again by 1.3 per cent this month, raising the annual growth rate to 8.2 per cent, new figures show.

Data from lender Nationwide shows that house prices this month were "unseasonably strong" this month, rising by 1.3 per cent over the month, 2.2 per cent over the quarter, and demonstrating the fastest rate of annual growth since February 2005.

The housing survey reveals that the average home in Britain now costs £169,413 and new mortgage approvals are still on the increase, suggesting that confidence levels remain high.

The building society claims that the housing market has not faltered, despite the decision by the Bank of England's Monetary Policy Committee (MPC) in August to raise interest rates to 4.75 per cent.

Nationwide group economist, Fionnuala Earley, commented: "Buyer interest remains robust as estate agents continue to report strong enquiries. However, fewer sellers willing to put their properties on the market is adding to already squeezed supply - which increases price pressure."

The lender also notes that the buy-to-let market is continuing to perform strongly and looks set to continue to do so. Remortgaging rates are also high, with most people choosing to increase their mortgage by around ten per cent.

Analysts had predicted that house prices would dip following August's interest rate rise, but the latest figures suggest that this is not the case. Experts are now forecasting a further rate rise this year, probably in November.

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