House price inflation at its slowest in 9 years |
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Tue, 13 Dec 2005 09:15
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LONDON: U.K. house prices rose at an annual 2.2 per cent in October, the lowest rate in nine years, according to government data. In September, the growth has been at a rate of 3.3 per cent.
The Office for the Deputy Prime Minister, which compiled the data, said the figures indicate the subdued nature of the market. There are some regional variations seen in the data. While house prices fell in London by 0.2 per cent in the past year, prices have gone up by 10 per cent in Wales. In Scotland and Northern Ireland, in spite of a visible slowdown, the prices have actually gone up by 9 per cent and 11 per cent respectively.
The fall in prices in London indicate the first annual fall in more than nine years. The last time house prices fell was in the second quarter of 1996 at a rate of 1.1 per cent.
Studies carried out by mortgage lenders later, however, indicated that there is growth in terms of number of sales and mortgage approvals.
The ODPM said the average price of a house stood at 186,103 pounds in October compared with 186,755 pounds in September. It added that the average price paid by first time buyers across the country was 152,331 pounds in October and the average price paid by former owner-occupiers was 201,374 pounds.
The study was based on a sample of 40,000 completed sales unlike other agencies, which base their surveys on asking prices.
Studies by mortgage lenders had indicated that house prices are starting to pick up since October. Halifax, the largest mortgage lender, had said the prices in November were growing at an annual 5 per cent a year.
Bank of England had said the number of new mortgages approved but not yet lent, which is widely seen as an indicator of future trends, has reached its highest level for 18 months.
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House prices in the UK are falling, says Nationwide 