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House prices back to 2008 level

House prices back to 2008 level

Category: Mortgages

Updated: 02/10/2009
First Published: 02/10/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The upward momentum in the housing market that has been in evidence in recent months has seen house prices revert back to the level they were a year ago.

Prices in the property market rose for the fifth consecutive month in September, increasing by 0.9 per cent. The average price for a home in the UK finished last month at £161,816, up from £160,224 in August, according to Nationwide.

The average price of housing is practically unchanged from the level it was a year ago. It is the first time since March 2008 that the year-on-year rate of change has not been negative.

The three month on three month rate of change also provided some encouraging evidence of an upturn in property values, rising from 3.3 per cent in August to 3.8 per cent in September – the highest level since August 2004.

"These are positive figures and long may a steady increase continue," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

"A fraction of confidence is returning to the mortgage environment and hopefully a growing number of providers will regain a little more of their appetite to lend."

Further figures showed that house prices rose across all regions of the UK in the third quarter of the year, with particularly strong gains in the South East, South West and Northern Ireland.

"The recent trend in increasing house prices has been supported by very low levels of stock on the market," warned senior economist at the Royal Institution of Chartered Surveyors, Brigid O'Leary.

"An increase in property for sale would improve transaction levels but could also put some renewed downward pressure on house prices."

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