Value of UK homes 'may be on the rise'
It has been revealed that Nationwide - the UK's largest building society, believes there is a "reasonable chance" that 2009 will end with house prices standing higher that they were at the start of the year.
This was branded an 'unthinkable' scenario a few months ago by the Nationwide's chief economist.
The housing marked showed signs of improvement after the Nationwide's latest house price survey revealed that prices rose by 1.3 percent this month compared with to last month.
It said that the average cost of a house in the UK is currently £158,871, with the annual rate of property value falls slowing significantly to 6.2 percent.
The quarterly comparison of property prices rose from 1 percent last month to 2.6 percent this month, marking the highest level seen since early 2007, during the housing market boom.
In July, house prices were 6.2 percent lower July 2008, but this was significantly lower compared to the 9.3 percent annual house price fall in June.
Martin Gahbauer, chief economist at Nationwide said "House prices have been remarkably resilient so far this year, despite a recessionary economic background with sharply rising unemployment."
He went on to add that this "correction" was an outcome to the harsh decline in activity in the housing market at the peak of the financial crisis last year.
Mr Gahbauer said that many potential buyers could have continued with plans to purchase a property but had remained cautious and put it off due to the uncertainty in the economy.
As the economy showed signs that it was beginning to improve, these buyers returned, encouraged by low interest rates on mortgages.
The increase in demand for property, together with the boosted activity coincided with few properties being put on the market, which naturally resulted in a rise in house prices. "It is unlikely the price increases can be sustained for long at the very strong rate observed over the last few months," he said.
About the Author:
UK Price Comparison website Which4U - Compare Credit Cards, Savings Accounts, Fixed Rate Bonds, Bank Accounts, ISAs, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals
One Response
-
I have to commend you on your dedication to providing quality information to your readers. You have made a very valuable contribution in this article.