Halifax: House prices up 1.6% in September
Tuesday, 06 Oct 2009 15:45
House prices rise 1.6 per cent in September but are down 7.4 per cent annually, says the Halifax
House prices for September increased by 1.6 per cent in value, but were down 7.4 per cent annually.
The house price index from the Halifax today puts the average price of a home at £163,533, with house prices for quarter three (Q3) up for the first time in two years.
Today's index follows that of Nationwide last week, which said UK house prices are now at the same level as September 2008, and reported the average price of home at £161,816.
The Halifax today said prices rose for the third consecutive month in September, and prices in the three months to September rose by 2.8 per cent compared with the previous quarter.
Halifax, now part of Lloyds Banking Group, said the rise was due increased demand and low supply levels of homes, but warned the end was not yet in sight. Martin Ellis, Halifax housing economist, said: "Continuing increases in unemployment and low earnings growth are likely to constrain the rise in demand.
"There are also some signs that the improvement in market conditions is encouraging more people to put their properties up for sale.
"This development could loosen market conditions by alleviating the current shortage of supply and curb the pace of house price growth evident in recent months."
He added that housing market activity had improved in recent months but was low on a historical basis.
Despite today's figures from the Halifax, those in the property industry have remained cautious of a market recovery.
Keshav Thukaram, managing director of buy-to-let website Smartlandlord.co.uk said: “Don’t be fooled by estate agents talking up the market on the back of these figures.
"This is just another indication prices are bottoming out - not that they are going to start shooting back up again in the medium to long term. We are still a long way from a full-blown recovery."