BBC Home
Explore the BBC
BBC News
Launch consoleBBC NEWS CHANNEL
Last Updated: Friday, 4 November 2005, 10:07 GMT
UK house price recovery continues
House price inflation rose in October, for the third month in a row, according to the latest survey from the Halifax.

Actual prices were unchanged between September and October, with the average house now costing 168,210.

But compared with a year ago prices have now risen by 3.9%, up from September's rate of 3%.

The Halifax's survey is in line with this week's report from the Nationwide, which also reported that prices are picking up.

Prices for the three months to the end of October were up 2.9% compared with the previous three month period, Halifax said.

Martin Ellis, chief economist at the Halifax, said the market has been strengthening since earlier in the year.

But he said the property market is not poised for another round of sharply rising house prices.

"This year's slowdown in the pace of UK economic growth and the historically high level of house prices relative to earnings are expected to curb the recent improvement in housing demand and prevent a marked pick-up in prices," he said.

Market picks up

Several other indicators have suggested that the market is coming out of the slowdown that started in the summer of 2004.

Lenders see more interest from buyers

Inland Revenue figures show that the number of properties sold rose by 16% between the second and third quarters of 2005.

According to the Bank of England the number of mortgages approved for house purchase, but not yet lent, rose in September to their highest level since June last year.

These mortgage approvals are widely seen as a good indicator of future trends.

The Royal Institution of Chartered Surveyors has reported that enquiries from buyers went up in September for the fourth month in a row.

The BBC is not responsible for the content of external internet sites


Americas Africa Europe Middle East South Asia Asia Pacific