House prices go up 1.4% in February: Hallifax study |
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Published
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Wed, 08 Mar 2006 11:10
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LONDON: House prices have gone up 1.4 per cent in February, says HBOS, providing further evidence that the property market is gradually consolidating.
This is the highest monthly rise since August 2005, which has also more than reversed the marginal decline of 0.5 per cent recorded in January, the bank's Halifax survey indicated. The annual rate of growth was the strongest since May last year -- 5.1 percent.
Economists are not concerned by these figures and they are now sure the Bank of England's Monetary Policy Committee, which is in session until Thursday, is unlikely to effect any changes in the interest rates.
Halifax said the average price of a home in Britain stood at a seasonally-adjusted 173,498 pounds in February.
Halifax's chief economist Martin Ellis said the mixed pattern of monthly rises and falls is typical of a slower housing market. A better economic growth, low interest rates and high employment will trigger demand, but the prevailing higher prices make housing unaffordable for first-time buyers, he said.
Halifax said it appears that the buyers' market is ending with available stocks for sale at its 15-month low.
Halifax came out with a separate study showing that cost of owning a home rose 7 per cent in 2004-2005, which is more than three times the rate of inflation. The cost of owning a house in London, at 8,133 pounds a year, is 28 times above the national average.
Halifax predicted that house prices would rise by about 3 per cent in 2006.
A recent study by the Royal Institute of Chartered Surveyors showed that the number of new buyer enquiries increased for the eighth successive month in January, while the level of available property for sale fell to a 15 month low.
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Nationwide expects subdued growth for property market in 2006 