–Halifax Economist Sees Prices Staying Static Through 2010
LONDON (MNI) – UK house prices rose by 0.2% in August and were 4.6%
higher than over the same period of 2009.
Those analysts who had produced a forecast for the survey had
anticipated a negative result for the month, in the wake of a flurry
of other house price surveys showing increasing weakness in the
sector.
Halifax Housing Economist Martin Ellis said that the small decline
in prices seen earlier this year had now been reversed following July’s
rise as well. Prices had effectively been static since the end of 2009
and were likely to remain that way through 2010.
“Prices are now at a very similar level to that at the end of last
year. Activity has also been largely static since the start of the year.
These developments suggest that the market is broadly stable with house
price inflation having cooled since last year when supply shortages
helped to push up prices. The improved economy, strengthening labour
market and low interest rates are all supporting housing demand. We
expect that UK house prices will remain static overall in 2010.”
–London newsroom: 44207 862 7491; email drobinson@marketnews.com
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