Business Advice for all UK firms from starting a business to flotation

House prices rise again

House prices in the UK have risen for the fourth month in succession following a 1.6% increase in August, according to data released by the Nationwide.

Property prices are still lower than last year but the annual rate of decline in property values has slowed to 2.7%. The average price of a home is now £160,000, up from £158,000 in July.

A key reason why house prices have contiunued to rise is the historically low level of interest rates, with the Bank of England holding rates at 0.5% since March.

"The fall in debt serving costs has meant that fewer homeowners are under immediate financial pressure to sell than might have been expected in a recessionary economic background with rising unemployment," said Martin Gahbauer, Nationwide's chief economist.

Share |

Login or register to post comments
Printer friendly version

Post Date: August 27th, 2009