House prices rise by fastest rate in 18 months
HOUSE prices rose at their fastest rate in 18 months in October as the market bounced back from the doldrums.
Homeowners saw the average cost pushed up 1.8 per cent to £164,919 – a solid 6.6 per cent above the trough of April 2009.
The rise is a sharp contrast to September’s record drop of 3.7 per cent and prompted property experts to predict a rising market in the New Year.
Stuart Law, of property investment firm Assetz, said: “These figures are evidence that the underlying trend of house price growth remains much firmer than recently represented.”
He added: “I also still expect to see the market continuing to firm up in November and December, which may well result in positive growth of around our predicted five per cent by the end of 2010.”
Nicholas Leeming, commercial director at property portal Zoopla.co.uk, said: “Many sellers are reducing prices in an attempt to secure sales before Christmas and avoid the traditional New Year rush of property coming on to the market. This means asking prices have realigned with what buyers are willing to pay.”
And Martin Ellis, Halifax housing economist, said: “Interest rates are likely to remain very low for an extended period, which will continue to support improved mortgage affordability.”
But the boss of one of Britain’s biggest housebuilders called on banks and lenders to lend more mortgage money or risk a housing crash.
Requirements that banks should be forced to hold on to more of their money and proposals for new rules on mortgage lending are stifling the housing market, said Steve Morgan, founder of Britain’s fifth biggest home-builder, Redrow.
