Wed, 04 Oct 06
House prices rose by 1.0% in September, the Halifax said today. The annual rate, however, eased for the third successive month to 8.0%, the lowest rate since April 2006.
Whilst housing market activity remains firm, there are further signs that it has levelled out, said the lender. The number of loans approved for house purchase has stabilised at around 120,000 (seasonally adjusted) a month in the three months to August, according to the Bank of England. The latest RICS survey reported that completed property sales eased marginally in August for the second successive month.
All houses, all buyers index (1983=100) | |
Index (seasonally adjusted) | 586.4 |
Monthly change | 1.0% |
Annual change | 8.0% |
Standardised average price (seasonally adjusted) | £181,186 |
Higher mortgage rates following the Bank of England's rate rise in August and the increase in fixed rates over the past five months are expected to dampen housing demand over the coming months. The recently announced increases in utility bills will also put pressure on householders' finances, further curbing housing demand. As a result, house price inflation is expected to moderate over the remainder of the year.
The nine English regions have experienced remarkably similar house price gains in the last 12 months with all regions experiencing rises of between 5.5% and 8.5%; the narrowest range recorded since the Halifax House Price Index began in 1983. Prices have risen most strongly in Northern Ireland (30%) and Scotland (14.5%) over the past year. All other regions have recorded single digit house price inflation.
Annual house price inflation in Greater London eased from 10.9% in Q2 to 8.5% in Q3, indicating that the boost to prices in the capital from this year's record high City bonuses has diminished.
The ratio between prices in the south and north increased marginally for the second successive quarter in 2006 Quarter 3, indicating that the north/south divide is beginning to widen again following four years of almost continuous narrowing.
Region | Index | Standardised | Quarterly change | Annual change |
North | 570.6 | 143,970 | 1.4 | 5.5 |
Yorks & the Humber | 598.8 | 138,268 | -0.8 | 7.9 |
North West | 565.3 | 144,590 | 1.7 | 6.4 |
East Midlands | 592.5 | 154,877 | -0.8 | 5.7 |
West Midlands | 604.2 | 170,518 | 0.5 | 7.1 |
East Anglia | 580.8 | 174,722 | 0.2 | 8.4 |
South West | 592.6 | 195,930 | 1.5 | 7.8 |
South East | 573.2 | 232,645 | 1.5 | 7.7 |
Greater London | 676.1 | 269,188 | 1.2 | 8.5 |
Wales | 582.3 | 150,687 | 0.8 | 2.9 |
Scotland | 423.5 | 122,511 | 0.7 | 14.5 |
Northern Ireland | 650.9 | 167,391 | 6.6 | 30.0 |
UK | 580.7 | 179,425 | 0.7 | 8.0 |
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