Halifax says houses cost more last year than in 2008
Share
House prices ended 2009 1.1% higher than they were in 2008, the latest Halifax House Price Index shows.
Prices increased for the sixth successive month with December’s rise of 1% slightly below the average 1.2% for the preceding five months.
House prices in the final three months of 2009 were 3.5% higher than in Q3. This is the biggest quarterly increase since 2006 Q4 when they rose by 4.2%.
Overall prices have risen by 9.4% since a low in April 2009, an incr-ease in the average price of £14,552 over this period. This follows a decline of 23% between August 2007 and April 2009, making the average house price £169,042.
Martin Ellis, housing economist at Halifax, says: “The significant cut in interest rates following the worldwide financial upheaval in the autumn of 2008 has markedly reduced the burden of servicing a mortgage for many households. This has helped to stimulate housing demand, albeit from a low base.”
His view is that overall house prices will be flat during 2010.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
