Property: Homeowners' mixed joy as house sales rise 11%

HOMEOWNERS got a shot in the arm last night as new figures revealed house prices had climbed seven per cent in the past year.

PROPERTY House sales have risen by 11 PROPERTY: House sales have risen by 11%

With the number of sales also up by more than 11 per cent in the past 12 months, one leading estate agent called the news “welcome”.

But as the Halifax recorded the biggest monthly price fall in September – 3.6 per cent – in nearly 30 years, there were also warnings that the market had dramatically slowed in recent months and could start to fall again.

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The mixed picture began with figures from LSL, owner of the Your Move and Reeds Rains chains, reporting year-on-year price growth of 7 per cent.

The number of transactions in September also increased by 3.4 per cent in the month, up 11.5 per cent against last September. David Newnes, estate agency managing director of LSL, said: “Historically, transactions slow in September but there has been a welcome increase in activity this year.”

But Dr Peter Williams, chairman of housing research consultancy Acadametrics, said: “The average price of a home in England and Wales is now £223,965... down £7,863, or 3.5 per cent, from its peak in February 2008 of £231,828.”

He warned: “We anticipate that some, but not all, of the regions in England and Wales will be showing falling prices on an annual basis by December 2010.”

Property economist John Wriglesworth said: “The Government spending review is creating great uncertainty and lenders are very short of funding.”

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