Property prices up by 1.2% in October, says HalifaxMonday, 07 November 2011 10:49
The price of property in the UK went up by 1.2 per cent last month, according to data from the Halifax.
The lender’s latest house price index suggests that the average house now costs in the region of £163,311, some 1.8 per cent lower than in October last year.
Housing economist Martin Ellis said that the housing market has proved resilient recently, despite the weak economic recovery.
“Despite these developments, house sales and the supply of properties for sale have remained very stable since late 2010,” he said.
“The prospect of exceptionally low official interest rates over the foreseeable future is likely to continue to support the market in the face of a very difficult economic climate.”
According to Howard Archer, chief economist at Global Insight, October’s surge in property prices is likely to be only temporary.
“House prices can be notoriously volatile on a month to month basis and there are often significant fluctuations around a trend,” he said.
“So October’s jump in prices does little to change our view that house prices are headed down over the coming months and are likely to fall by five per cent from current levels by mid 2012.”