article-77

FT: House prices up 0.7% amid wider fall


Published on: 12/11/2007

House prices rose by 0.7 per cent in October, according to the latest FT House Price index released today.

This is up from a 0.3 per cent rise in September.

However, annual house price increases are now only 8.9 per cent, down from the 10.1 per cent recorded in July.

This is the lowest annual increase since January.

“The annual rate of house price inflation has fallen by more than ten per cent over the last four months,” said Dr Peter Williams, chairman of Acadametrics the analysts carrying out the survey for the FT.

“Monthly rates are subject to fluctuations and we would see the October figure as something of a blip set against the continuing fall in the annual inflation rate.

“On the basis of this evidence and the wider market data available, we would expect to see further reductions in the rate of house price inflation come through as we move towards the end of the year.”

The average house price across England and Wales now stands at 228,298, according to the FT.

London, however, remains out of step with the rest of the country.

Averaged over the previous three months, London has seen annual average house prices increase by 17.8 per cent nearly double the growth achieved in the next best region.

“Not surprisingly, stripping London out of the assessment brings the overall monthly increase for England and Wales down by 0.2 per cent to 0.5 per cent and the annual rate to 6.6 per cent, i.e. over two percentage points lower,” explained Mr Williams.

The south-east and south-west both saw strong annual average house price growth, with prices increasing 9.5 and 9.4 per cent respectively.

However, the wider trend is of a slowing market.

“What we are witnessing is a market in transition – albeit at this stage it is hard to predict where it might settle,” concluded Mr Williams.

“A number of organisations have published forecasts for 2008 and these range in nominal terms from plus three per cent to minus per cent, in essence agr

Source: https://www.aboutproperty.co.uk/

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