UK house prices up again in September

| 6 October 2009 10:17

The Halifax reports that UK house prices rose for the third consecutive month in September, up 1.6% from August levels. Key to the rise has been a lack of supply coupled with increased demand (100% mortgages have helped as well).  Last week, Nationwide had pointed to a rise in ‘accidental landlords’ who did not wish to sell into a soft market as a reason for the limited supply.

Nevertheless, house prices are still 7.4% lower than they were at this time last year, according to the Halifax.  What I find curious, however, is that the Nationwide data released last week show house prices flat with year ago levels.  Below is a BBC News graph showing the growing discrepancy between the two major UK house price indices.

Web

As in the U.S., I would like to see how these figures hold up in winter time, especially giving the huge disparity in the two indices.  Moreover, Britain has shown a considerable degree of economic weakness of late. Manufacturing data released today showed industrial production at the lowest levels since 1987, leading many to believe the UK has yet to shake off a nasty recession.  If economic weakness lingers, expect it to also be reflected in home values.

Sources

More signs of house price rises – BBC News

House Prices Now At Same Level As September 2008 – Nationwide

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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