House prices up 1.2% in October says Halifax
House prices in October rise by 1.2% according to figures from the Halifax
Tuesday, 03, Nov 2009 03:08
By Sarah Garrod.
The Halifax has said house prices rose 1.2 per cent in October, marking the fourth consecutive monthly rise.
Average home prices now stand at £165,528 according to the bank, rising 2.9 per cent, or £4,667, since December 2008.
However, annually prices were 4.7 per cent lower, causing forecasters to be wary of a housing market recovery for some time.
James Hyman, partner for residential sales at property consultants Cluttons, said: "It is encouraging to see the latest Halifax house price figures supporting those of many other commentators and showing that house prices increased once again in October, marking the fourth consecutive monthly increase on their index.
"However, the price recovery is mainly due to the supply crisis and will not last forever. Those sellers who have bitten the bullet and put their homes on the market in Central London in the last few months have been well rewarded, but I would expect to see an increase in supply over the coming months and particularly in the New Year. We could see a buyer's market return in early 2010."
The Halifax figures showed prices were 2.9 per cent higher in the quarter to October, when compared to the previous quarter. Halifax also agreed that it was higher demand and a supply shortage which could be behind today's figures.
Martin Ellis, Halifax housing economist, said: "Demand for houses has risen in recent months due to the very low level of interest rates, the decline in property prices since the summer of 2007 and a pick-up in consumer confidence on the back of better economic news. Higher demand has combined with a low level of properties available for sale to result in rising house prices over the past few months.
"There are some indications that more people are deciding to put their homes on the market, encouraged by the recent improvement in market conditions. A continuation of this trend could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance."