Official figures indicate house prices have gone up in November

Official figures indicate house prices have gone up in November

	Published : Mon, 16 Jan 2006 14:54 By : Phil Bateman Print this Story

LONDON: House prices are going up albeit slowly, according to data compiled by the Office of the Deputy Prime Minister. It said house price inflation rose to 2.5 per cent in the year ended November from a nine-year low of 1.8 per cent in October. Average house price prevailed at 186,431 pounds in November compared with 185,398 pounds in October.

Analysts felt the data is evidence enough to show that the property market is firming up and the interest rate cut in August last had indeed helped the trend. They are, however, of the view that the gains will be limited over the coming months, constrained by affordability, higher debts and somewhat lower earnings growth.

The ODPM's survey said the increase in London was of the order of 2.2 per cent after falling 0.5 per cent in the year ended October -- the first such fall in more than nine years. Prices moved upwards in the north-west and north-east of England and northern Ireland.

The highest inflation rates in internal England prevailed in Yorkshire and the Humber (6.2 per cent), the north-west (6.1 per cent) and in the north-east (4.8 per cent). The West Midlands (1.8 per cent) and the south-east (0.1 per cent) saw the lowest growth, while the east of England saw no growth at all and in the East Midlands and south-west house prices fell 0.2 per cent.

Northern Ireland had the largest increase -- from 10.7 per cent in October to 17 per cent in November.

In Wales and Scotland there was a sharp slowing down. Priced dropped from 8.8 per cent to 6.5 per cent in Wales, while in Scotland, it fell from 9.3 per cent to 8.9 per cent. However, the inflation rate in these areas is still above the U.K. average.

The survey was based on a sample of 40,000 completed sales.

The findings are in tandem with studies conducted by private firms and mortgage lenders, which had indicated that the housing market is on a revival course. The ODPM bases its findings on completed property transactions, hence do not match the figures projected by the private firms.