House prices rise by 11%, says Assetz

Posted: 22 May 2007 10:57:54 GMT

House prices have increased by an average of 11.1 per cent in the last year, analysis of the five major house price indexes has shown.

House prices have increased by an average of 11.1 per cent in the last year, analysis of the five major house price indexes has shown.

According to the survey of the major house price indexes by property investment company Assetz, the average house in the UK has risen in value by £20,000 in the last 12 months.

April also saw the rate of house price inflation increase by 0.7 per cent, the research concludes, suggesting no let-up in booming property market.

Of the five main house price indexes covered, Rightmove's was regarded as the most optimistic, with sellers apparently optimistic about market prices.

However, the recent increase in the base rate to 5.5 per cent is likely to eventually take its toll on homeowners and buy-to-let investors, Assetz predicts.

"The increased rate of growth to 11.1 per cent can be attributed to the current high levels of confidence amongst sellers, reflected in asking prices, but I expect this to fall back in line with our standing forecast of seven to ten per cent growth by the end of the year," commented Stuart Law, Assetz's managing director.

However, he added that the continuing imbalance between supply and demand in the housing market was likely to ensure that prices would continue to go up.

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