House price growth back in double figures by Finance News Bulletin

Published: 22/05/07

The unstoppable property marketplace boom continues to defy last month's upset rise in interest ratesHome prices across Britain rose 07% in February, more than twice the 03% seen in January, according to the newest housing index from the Nationwide

That takes the annual rate to 102% and lifts the average possessions price to £174,706 This is more than £16,000 more than last day - a gain of £40 a day In London, house owners will have seen their properties go up in value by around £70 a daylight hours on average

The Nationwide said the market was still being squeezed up by a shortage of properties for sale and the continued ease of use of competitive mortgage dealsHowever, its possessions market experts predicted a gradual slowdown in the next half of the year as the number of buyers dries up and more homes approach on the marketplaceNationwide's chief economist Fionnuala Earley said the marketplace was taking far longer to react to the Bank of England's 'medicine' than it did at the end of the last boom in November 2003She said: 'Back then set rate mortgage rates blast up by 1

1% points in the three months after the first rate rise In difference, fixed rate mortgage rates rose by just 025% points in the introduction to the speed increase in August 2006 Given the more modest impact on mortgage expenses, it shouldn't be that surprising that the market is taking somewhat longer to respond this time

'The Bank of England stunned house buyers and the City in January with a surprise 025% rise in tax to 525%, the third rise since August Although it avoided a next successive rise this month, most economists expect rates to strike 5

5% by summer at the latestThis is Money is crowded with information, advice and tools that can help you get ahead and save moneyLondon home prices have more than trebled in a decade Anyone who salaried £100,000 for a property at the start of 1997 would now own an asset worth more than £315,000

Howard Archer, leader UK and European economist at City analysts Global Insight said the latest Nationwide statement 'indicates that the housing market has still got substantial life left in it' He predict that house price inflation will average around 6% over 2007choose a loan term 12 months (1 year) 24 months (2 existence 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 existence 120 months (10 existencePlease select a type of insurance Life insurance Home and contents Car stop working armed forces Health - medical Health - dental Travel Pet -

Visit original article: