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News: House Prices Increase By 1.2%, Says Government

Tue, 10 Nov 09

House prices rose by 1.2% between September and August, official government figures have revealed.

The Department of Communities and Local Government (DCLG) figures put the price of an average home at £199.303, a level not seen since November 2008.

This is the fourth month-on-month increase in a row on a seasonally adjusted basis and the sixth increase in a row on an adjusted basis.

According to the DCLG figures the annual rate of decline is now 4.1%. This is a marked improvement on August’s figure of 5.6% and March 2009’s peak of 13.6%. This latest annual rate of decline is the lowest for 13 months.

David Brown, commercial director of LSL Property Services, said of these latest figures: “Another month of higher house prices and another reason to believe the green shoots of recovery have firmly taken root. House prices have not yet hit last year’s level, or the heady heights of 2007, but with two consecutive quarters of price inflation, the housing market is in a period of sustained recovery. We are seeing the effects of constricted housing supply, combined with a growing demand as first-time buyers and property investors alike look to take advantage of affordable property values.”

The DCLG figures are among a number of positive house price indices released in the last month. Home.co.uk’s latest Asking Price Index also recorded a rise in prices leading up to the October report.

 

By Joe Lepper

See also: Estate AgentsAsking Price Index, House Prices and Trends by Town and Postcode.

 

 

 

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