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News: House Prices Up 1.6%, Says Halifax

Tue, 06 Oct 09

House prices rose by 1.6% in September, according to latest figures released by the Halifax.

This is the third consecutive monthly rise in the Halifax’s house price index and puts the price of an average home at £163,533.

These latest figures also mark the first quarterly rise in the Halifax's house price index for two years and puts the annual rate of decline at 7.4%.

Increased demand and a lack of supply are key factors in the rise, according to Halifax housing economist Martin Ellis.

He said: “The marked improvement in affordability due to the reduction in both property prices and interest rates since mid-2007 has been a key factor in stimulating higher demand.”

However, he warned that this might not be sustained as unemployment is expected to rise in the coming months. He added: “Continuing increases in unemployment and low earnings growth are likely to constrain the rise in demand.”

Home.co.uk’s latest Asking Price Index shows that the mix-adjusted average asking price for homes on the market in England and Wales fell by 0.6% over the month leading up to the September report.

By Joe Lepper

See also: Halifax House Price Index, Asking Price Index, House Prices and Trends by Town and Postcode, Mortgages

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