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Fri 10th September, 2010
News
Mixed Messages On House Price Inflation |
31st August 2006 |
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Two of the leading commentators on house prices gave mixed messages on the state of the housing market last week.
According to Rightmove, the recent mini-boom in house prices could be over. It reports that average asking prices fell by 1.6 per cent from £217,580 in July to £214,040 in August. The drop was the largest since November 2004 and the first since December 2004.
Meanwhile, Hometrack reports that the average price of a house in England and Wales was £167,200 in August, an increase of 0.4 per cent on July. Prices have risen by 3.9 per cent from last year.
The Hometrack report highlights the continuing north-south divide in house price inflation, with a vibrant London market leading the way. Greater London rose by 0.9 per cent whilst Yorkshire & Humberside were static. The next biggest rises were in the South West (0.5 per cent) and South East (0.4 per cent). The remaining regions managed rises of between no more then 0.1 to 0.2 per cent.
London has its own market dynamics due to lack of supply of suitable properties and an increasing number of foreign investors especially for the more expensive homes above two million pounds.
For the rest of us, there are concerns that if the Bank of England, as predicted, raise rates once more before the end of the year the housing market is likely to cool.
For further information please contact Mr Bill Dhariwal, Managing Partner, Lawcomm Solicitors T: 023 8038 4404 E: bill.dhariwal@lawcomm.co.uk |
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