Property prices 'show slight rise'

Posted: 15 May 2007 10:52:19 GMT

The average price of a property in the UK rose by 1.1 per cent between March and April, says new findings from the Department for Communities and local Government (DCLG).

The average price of a property in the UK rose by 1.1 per cent between March and April, says new findings from the Department for Communities and local Government (DCLG).

According to the body's index, on average buying a home would set the buyer back £206,890, a rise from £204,556 the previous month.

The new figures correspond with those released earlier from banking providers such as Halifax and Nationwide, which also showed a market in good health.

Annual house price inflation decreased slightly from 11.8 per cent to 10.9 per cent, state the figures.

Chief UK and European economist at Global Insight Howard Archer said that he expected that house prices have peaked.

"We suspect that house prices will only gradually lose buoyancy over the coming months despite the likelihood that demand will be increasingly dampened by the rising affordability pressures stemming from higher interest rates," he commented.

Prices in Northern Ireland were highest, with the average price of a property there setting the buyer back £217,579, said the DCLG.

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