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House prices rebound after February slump

House prices rebound after February slump

Category: Mortgages

Updated: 08/04/2010
First Published: 08/04/2010

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 It is now over 6 months old so the content may be out of date.
House prices regained their forward momentum last month, with an eighth rise in just nine months.

Values had fallen by 1.6 per cent in February, but last month's 1.1 per cent rise has partly negated the drop. The average house price in the UK ended March at £168,521, according to the Halifax house price index.

On an annual basis, house prices are 5.2 per cent higher, which is the largest increase in the annual rate of change – measured by the average for the last three months against the same period a year earlier – since December 2007.

Property prices are 9.1 per cent improved above the trough that was seen in the market last April.

In the 11 months, the average price of a home has improved by just over £14,000.

However, the rate at which prices are increasing has slowed somewhat; values in the first three months of 2010 were 0.6 per cent higher than in the final quarter of last year.

By contrast, the rise between the third and fourth quarters of last year was 3.6 per cent.

Martin Ellis, housing economist, said the return of the £125,000 stamp duty threshold affected the demand for property at the end of 2009 and the beginning of 2010, while the severe weather conditions also negatively impacted the market.

"There are signs that an increase in the number of properties available for sale is beginning to reduce the imbalance between supply and demand," he added.

"This should help contain the upward pressure on house prices."

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