Quarterly house price change 'highest for 5 years'

Posted: 05 Oct 2009 12:17:33 GMT

The increase recorded in the average house price between the second and third quarters of 2009 was the highest it has been since August 2004, according to Royal Institution of Chartered Surveyors (Rics) senior economist Brigid O'Leary.

Commenting after Nationwide Building Society released its latest property price data – which showed that the average value of a UK home in September was more than £160,000 - Ms O'Leary said the quarterly change was 3.8 per cent.

She also suggested that house prices in all regions rose by an average of 3.7 per cent between the second quarter and the most recent three-month period this year.

"Just as house prices fell very quickly at the start of the downturn, the recent turnaround has been surprisingly strong," the expert explained.

Despite the noted upturn, the Rics economist warned that rising unemployment and potential future increases in mortgage interest rates could yet "weigh on the outlook" for property prices in the coming months.

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