Monday 30 September 2013

House prices in biggest month-on-month rise for six years


HOUSE prices in England and Wales posted their biggest month-on-month gain in more than six years in September, but talk of a price bubble is overdone, property analysis firm Hometrack said in a survey on Monday.
House prices rose 0.5 percent from August, the biggest increase since May 2007, Hometrack said. Prices were up 2.4 percent from the same month last year, the biggest annual increase since December 2007.
British house prices have picked up over the past 12 months, and some are concerned about an unsustainable price boom. But Richard Donnell, director of research at Hometrack, played down these fears.
"Prices are rising off a low base and talk of a housing bubble in relation to the national market is overdone," he said.
"We are seeing continued house price growth in London combining with modest gains across other regions and creating a picture of a broadening market recovery," he added.
Hometrack said it expected prices to continue to rise in the short term but cautioned that the market remained very sensitive to changes in demand and especially changing expectations over the outlook for mortgage rates.
Separate data from lender Nationwide released on Friday showed that British house prices shot up at their fastest annual pace in more than three years in September

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