Insurance News Archive
House prices up 0.2% in July
House prices across Britain rose by an average of 0.2 per cent in July this year, new figures show.
Leading lender Halifax reports that the UK property market is becoming increasingly stable, with a slight increase in prices last month following small house price falls for the previous two months.
Property prices for July 2006 rose to an average £177,020 and Halifax claims that the recent pattern of fall and increases suggests that the market is strengthening.
The company raised its full-year forecast for housing market growth from three to five per cent and predicted that high employment levels would continue to drive the property prices.
Martin Ellis, chief economist with Halifax, commented: "We expect the annual rate of house price inflation to ease, partly because the corresponding figures last year were strong. Increased pressure on householders' finances and mounting speculation of interest rate rises are also likely to curb demand."
The Bank of England's Monetary Policy Committee voted today to raise UK interest rates by a quarter point to 4.75 per cent.
Analysts had predicted that the MPC decision for August would be particularly tight in light of the strength of the UK economy and housing market, and recent inflation rates. However, the bank had not been expected to raise the cost of borrowing until later in the year.
03 Aug 2006