Prices up in the quarter

Posted: 04 Oct 2007 10:54:12 GMT

UK property prices continued to rise in the third quarter of the year, according to the latest figures.

UK property prices continued to rise in the third quarter of the year, according to the latest figures.

The Halifax House Price Index shows that there was an increase of 0.9 per cent in the three months leading to September.

Greater London saw the biggest gains, with house prices increasing by 2.3 per cent, while the south-east also did well, with inflation hitting 1.8 per cent.

Potential buyers were also given a boost with the month-on-month figures which revealed that house prices fell by 0.6 per cent across the UK.

It means that affordability has increased slightly, while the long-term trend is of prices rising.

"The UK economy is in a strong position," said chief economist at Halifax Martin Ellis.

"Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale will continue to support house prices," he added.

Howard Archer, economist at Global Insight, pointed out that a slight drop in prices may encourage the Bank of England to cut the base rate of interest before the year is out.

"It now seems likely that the Bank of England's next move will be to trim interest rates, possibly even before the end of the year, which will provide some relief to the housing market," he said.

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