February house prices up £50 a day

House prices rose by over £50 a day in February, an average of the main house price indexes, compiled by Assetz reveals.

Indexes from Rightmove.co.uk, Halifax, the Department of Communities and Local Government, the Financial Times and the Nationwide, show the average price of a home in February was £201,650, up from £200,628 in January.

Assetz believes that interest rates will peak at 5.25% and within 12 months will be back to 5%.

It says the robust condition of the property market has nothing to do with interest rates at their historically low levels and everything to do with lack of supply.

Stuart Law, managing director of Assetz, says: “The average price of a home in the UK has now broken through the £200,000 barrier, despite three interest rate rises since last August.

“This supports our belief that the market is driven by a shortage of homes and high demand from a growing population of potential homeowners.

“Rising income multiples are allowing more people to buy property despite rising prices, and the maintenance of interest rates this month at 5.25% will have boosted consumer confidence.

“With the rate of growth stabilising, the market is well set for continued steady growth as we head into the prime selling period and Assetz stands by its original prediction of 8% – 10% price rises in 2007.”