Housing market 'underpinned by strong fundamentals'

Posted: 18 Jul 2008 13:19:54 GMT

The average price of property in the UK has returned to the level it was at in August 2006, according to the latest Halifax House Price Index.

Those selling property will be pleased to hear that although house prices are 6.1 per cent lower than they were last year, the average price is still two per cent higher than it was two years ago.

Commenting on the latest statistics from the Halifax, Martin Ellis, chief economist, suggested there was room for optimism amongst sellers.

He said: "The average UK price remains slightly higher than two years' ago and is appreciably stronger than three or four years ago."

Sellers should be aware that house prices have risen by 150 per cent over the last decade and have increased by a massive 196 per cent since the housing market slow down in the mid nineties.

Reassuring those concerned about the state of the housing market, the Halifax states that it is "underpinned by sound fundamentals", a view which is echoed by Mr Ellis.

Employment has reached a record high of 29.55 million and the labour market drives a strong housing market.

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