Property News

House prices rise rapidly in April - 04/05/2006

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House prices in the UK made their biggest rise in two years, according to the latest survey out today.

New data from Halifax shows that prices increased by two per cent in April, meaning growth for the first quarter of 2006 stood at a robust 4.4 per cent.

Furthermore, the quarterly annual rate of inflation rose to eight per cent, rising from 6.2 per cent in March and marking the highest point in the last 13 months.

As a consequence, average house prices in the UK now stand at a revised figure of £178,992.

Howard Archer, chief economist at Global Insight, described the survey to the BBC as a "real shock that will heighten concern that prices are gaining excessive upward momentum".

John Butler, UK economist at HSBC, further noted that the current increase means that the annual rate of increase is now 18 per cent.

He told Reuters: "At face value that is not stability that is the type of pace associated with a boom."

Mr Butler did however add that other house price indexes such as that from Nationwide, did not indicate the same level of strength.

Experts predict a subdued second half of the year for the property market, though mortgage levels are still high compared to the same time last year.

© Adfero

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