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Halifax: House prices up 0.9 per cent

Halifax: House prices up 0.9 per cent

Friday, 19 October 2007 12:00 AM

House prices in the UK have increased 0.9 per cent over the last three months, according to figures released today by Halifax.

The increase has prompted an increase in annual average price rises to a level of 10.7 per cent.

However, there have been large differences across the country.

Some five regions have seen double digit increases in house prices over the last year.

Prices in Northern Ireland have increased by 29.1 per cent in the previous twelve months - however prices in the region are down 3.2 per cent in the three months.

London has seen average property prices increase 18.6 per cent; Scotland has witnessed growth of 14.2, whereas the south-east and East Midlands have seen prices increase 13.7 and 11.1 per cent respectively.

All have also seen price rises in the previous three months, with the largest increases recorded in London, 2.3 per cent, and the south-east, 1.8 per cent.

While all regions of the UK witnessed growth in average house prices over the last 12 months, increases were smallest in the West Midlands and the north-east, which recorded growth of 4.7 and 5.2 respectively.

The north-south divide in house prices has also continued to grow.

The average price in the south of the country is some £265,921, 68 per cent higher than the average house price recorded in the north of £158,636.

The differential has increased from the low of 56 per cent, recorded in the first quarter of 2006 - after almost four consecutive years of narrowing.

"Nationally, house prices in quarter three were 0.9 per cent higher than in the previous quarter. This compares with increases of 2.3 per cent in 2007 quarter two and three pre cent in 2007 quarter one, marking a continuing steady downward trend in the rate of house price growth since the end of 2006," commented Martin Ellis, chief economist at Halifax.

"The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale will continue to support house prices.