News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the April / May 2001 issue RPI news archive

Mixed messages on rising market - April / May 2001

House prices are continuing to rise with a 0.4 per cent increase during March, according to Britain's biggest mortgage lender, the Halifax.

These latest figures, released on the eve of the Bank of England's quarter per cent interest rate cut, take the annual rate of house price inflation to 4.1 per cent, said the country's largest mortgage lender.

Rival Nationwide, however, puts the March rise higher, at 1.4 per cent, following a 0.8 per cent drop in the previous month. This, according to the Nationwide, equates to an annual rate of house price inflation of 7.2 per cent, the lowest it has recorded since 1999.

The average price of a house, according to the Nationwide, now stands at £85,077, lower than the average of £87,109 calculated by the Halifax.

Despite its lower rating for price increases, the Halifax believes prospects for the housing market remain good over the next few months. `The likelihood of further (interest) rate reductions in the coming months and affordability levels that are not stretched, should all support demand during the remainder of 2001', it said.

During 2000, 9,000 less flats and houses were bought and sold than the previous year, according to latest figures from HM Land Registry. In all 236,000 homes changed hands, a fall of 3.62 per cent. The decline occurred at the time house prices were rising by an average of 10.1 per cent annually. The average price of property deals recorded by the Land Registry between October and December last year was £109,558. Detached houses averaged £167,790, semi-detached £91,999, terraced £80,937, and flats and maisonettes £111,687.

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