Continued growth for housing market

Posted: 16 Aug 2006 11:10:13 GMT

            Property News - Continued growth for housing market

House prices continued to swell during July with the average price standing almost £2,000 higher than the June price, according to research from Assetz.

This is an increase of almost £12,000 since July last year and demonstrates the continued buoyancy of the market.

The six major house prices indices show an average of 7.4 per cent annualised growth for July, up from the 6.32 per cent in June.

Stuart Law, managing director of Assetz, stated: "The housing market has performed even better then expected this summer, resulting in the average homeowner pocketing almost £2,000 in July alone.

"However, with the threat of another interest rate hike hanging over homeowners, the rate of growth is likely to ease up heading into the autumn months, back to a more realistic five to 5.5 per cent."

The full effects of the interest rate increase will only become apparent in September and October indices.

However, with another possible 0.25 per cent rate rise taking the base to the five per cent mark many first-time buyers may get cold feet.

The next Bank of England interest rate announcement will be made on September 7th.

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