Average house prices approach £200,000
September 5, 2007 by admin
Filed under News, News-Mortgages
The average price of a house has almost reached the £200,000 mark, according to new figures, but the rate of growth has shown further signs of slowing.
According to the Halifax House Price Index, house prices increase by 0.4 per cent during the month of August, with the average cost now £199,770.
This is the third month out of four that house price inflation has dropped below 0.5 per cent and the Halifax report claims this is indicative of a slowdown in the market.
In addition, the three-monthly rate of growth fell from 4.5 per cent in March to 1.6 per cent in August.
“The downward trend in house price growth is expected to continue over the remainder of 2007 as the five interest rate rises since last summer have an increasing impact on household spending and housing demand,” said chief economist Martin Ellis.
“Sound economic fundamentals, high levels of employment and a shortage in the number of properties available for sale will, however, continue to support house prices.”
The figures also showed that mortgage approvals in the three months to July of this year were nine per cent lower than those recorded during the peak September to November 2006 period.
Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, said the figures meant speculation of an imminent interest rate cut was “premature”.
