House prices jump says survey
Posted: 01 Aug 2006 09:56:45 GMT
July's report on the housing market from mortgage lenders Nationwide states that house prices rose by 0.8 per cent. This is a 0.5 per cent rise from June's 0.3 per cent price increase.
This is the highest reported price hike since April last year when shortly afterwards the market entered a lull due to rate rises and a previous run of good growth.
A rise in borrowing costs could be sparked at this point however most analysts believe that interest rates will stay at their current level.
Fionnuala Earley, group economist for Nationwide, stated: "While temperatures soared on the streets, house price growth remained fairly comfortable in July. After three months of broadly flat growth, house prices increased by 0.8 per cent in July.
"Annual house price growth is now 5.9 per cent, more than double the rate of growth seen this time last year when prices were increasing at an annual rate of only 2.6 per cent. However, the strong rate of annual house price growth reflects the weak patch in prices this time last year."
The average price of a home is now £167, 773 which is over £9,000 more than in July 2005.
In addition to the poor state of the market last year, the boom of house prices in London is also making the figures look better than they appear.