House prices up in Q2 of 2009 - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

House prices up in Q2 of 2009

House prices up in Q2 of 2009

Category: Mortgages

Updated: 12/08/2009
First Published: 11/08/2009

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 It is now over 6 months old so the content may be out of date.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 in the UK rose by 1.6 per cent between May and June, taking the average price of property to £191,423, according to figures released by the Department of Communities and Local Government (DCLG).

It means there has been a decrease in the annual fall of house prices as, during the same period last year, prices fell by 0.7 per cent. The market has now contracted by 10.7 per cent over the last 12 months, marking a recent improvement.

In March this year, the annual rate of decline was measured at 13.6 per cent.

The rise in house prices can be attributed a 2.4 per cent increase in the price of bungalows, flats rising by 2.2 per cent, semi-detached houses by 1.9 per cent, detached properties by 1.7 per cent and terraced homes by 0.6 per cent.

Meanwhile, a report by the Royal Institution of Chartered Surveyors (RICS) has said that a lack of housing stock played an important role in market improvements in July.

"Although demand for property is continuing to rebound, it still remains low from a historical perspective. Crucially it is the lack of supply that is helping to underpin prices at the present time," said Jeremy Leaf, spokesperson Jeremy Leaf.

Surveyors reported increasing buyer enthusiasm, with 63 per cent reporting a rise in new enquires, compared to a fall. This development was borne out in completed sales, which rose to an average of 15 per surveyor over the quarter, an improvement on the previous quarter's reading of 13.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.

10-year fixed mortgage market flourishes

Given upcoming negotiations on the UK’s relationship with the EU, we are expected to have some uncertain times ahead. As a result, many borrowers will be seeking long-term mortgage repayment security, and happily, the 10-year market is flourishing.