House price index is good news for home sellers

Posted: 02 Nov 2007 11:53:17 GMT

Home sellers have received some good news in the shape of the Chesterton October House Price Index.

Home sellers have received some good news in the shape of the Chesterton October House Price Index.

The report shows that property prices increased by 0.3 per cent between September and October.

It took the average house price to £197,616, with price inflation since July 2006 reaching 8.3 per cent.

The study also revealed that the average flat or maisonette is now worth £165,724, making them more valuable than semi-detached (£163,049) and terraced (£136,696) properties.

Chesterton has conceded that house price growth will cool in 2008 but said in the report that inflation will pick up again in 2009.

"We believe residential property price growth will continue to fall throughout 2007 and 2008 due to a slowing of the economy and a re-pricing of risk," read the report.

"However, there are no signs of a crash and growth is likely to return to robust levels in 2009 as the economy recovers and housing availability remains low."

Nationwide recently put monthly inflation at 1.1 per cent in October, while Your Move said that growth reached 1.2 per cent.

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