UK house prices see 'strong' rise by Finance News Bulletin

Published: 17/01/07

home prices were "unseasonably strong" in September, shrugging off August's rate rise, the Nationwide saysThe building society's accommodation survey found that prices rose by 13% during the month, copying the yearly rate of growth to 82%

The gain - the fastest yearly growth rate since February 2005 - means the average UK property now expenses £169,413The three-monthly trend showed prices up 22% in the three months to September, on the preceding districtDemand in the housing market remained "firm", said Fionnuala Earley, Nationwide's group economist

less sellers willing to put their properties on the market is adding to already squeezed provide - which increases price force"Just like the weather, the housing market was unseasonably warm in September as imposing's interest rate hike did nothing to cold the rate of house price inflation," she supposed"However, fewer sellers willing to put their properties on the marketplace is adding to already squeezed supply - which increases price pressure"And the Nationwide also pointed to the continued action of buy-to-let landlords as another factor keeping the marketplace goingThis latest review confounds widespread predictions that house prices would slow down as the year wore on, especially in the wake up of August's rise in interest rates

With the average home now costing - according to the Nationwide - almost £13,000 more than at this time last day, house prices have continued to outstrip the increase in most peoples' make incomesThe building society suggests that many unparalleled buyers are being helped to get a base on the property ladder by their parents remortgaging their own properties to cash in on increasing house prices and charitable their offspring a depositEach month almost as many persons remortgage their homes - borrowing more while staying put - as borrow to actually move houseThe Nationwide calculates that when they do this they typically increase their mortgages by about 10%

Doing so even on a house first bought just two years ago would typically raise an additional £11,500 per borrower, paying for most of an average unparalleled buyer's depositEven so, the rising burden of mortgages, usefulness bills and an other likely rate rise in November - widely predicted by City economists - may eventually cool down the marketplace"A rising number of people have missed mortgage payments recently," said Howard Archer of worldwide Insight"Even a relatively small overall increase in interest tax could ultimately have a clear dampening impact on accommodation market activity

"Watchdog replies FOS replies 1 CA replies Pre-1988 sales 1 FOS replies 2 Shortfalls Taxation Pre-1988 sales 2area East AngliaEast MidlandsGreater LondonNorthNorthern IrelandNorth WestScotlandSouth EastSouth WestWalesWest MidlandsYorks

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