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House prices start 2010 with a rise

House prices start 2010 with a rise

Category: Mortgages

Updated: 04/02/2010
First Published: 04/02/2010

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 It is now over 6 months old so the content may be out of date.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 have started the year as many homeowners, estate agents and politicians hope they go on – with a rise.

The 0.6 per cent increase takes the average house price in the UK to £169,777 and means values have now increased for seven months in succession.

Since the housing market reached what is widely considered its low point in April 2009, the average price of a home has risen by just shy of ten per cent – adding just over £15,000 to values.

It is, however, the smallest monthly rise since the upturn started back in July of last year.

House prices are improved by 3.6 per cent on the same month last year. In fact, this 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 February 2008.

Highlighting the improvement seen in the last 12 months, the comparable rate a year ago was -17.2 per cent.

However, Martin Ellis, housing economist, urged caution for the 12 months ahead.

"The marked reduction in interest rates over the past 15 months has, from a low base, boosted housing demand from those with a sufficient deposit to enter the market," he commented.

"Increased demand has combined with a low supply of properties available for sale to push up prices.

"There are some signs that more people are putting their homes on the market. A further increase in the supply of property is possible over the coming months, which would help to curb upward pressure on prices.

"Overall, our current view is that house prices will be flat during 2010."

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