UK house prices rocket by 12.4 percent: Rightmove |
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Published
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Mon, 20 Nov 2006 14:50
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LONDON - Housing market in the UK continues to boom and is seemingly unaffected by rising interest rates, as house prices increased at its fastest annual rate in two years.
The average asking price for a home in England and Wales rose by more than 12 percent to £222,333, according to figures released by Rightmove. It also said that property prices rose by 1.5 percent month-on-month.
Price inflation in the south seems to be the reason for increasing house prices, with prices in London by more than 18 percent from last year compared to just 3.1 percent increase in asking prices in the North. Prices in London varied from different areas with districts such as Kensington and Chelsea seeing prices rise by almost 50 percent.
Rightmove believes that lack of houses in areas where the demand is more is the reason for the increasing house prices. Says Rightmove commercial director Miles Shipside; "Southern sellers are responsible for pushing up the national growth rate into double figures. With the northern housing markets already stabilizing, and the south being driven ever higher by shortage of supply, the interest rate rise can only add to the cost of home ownership."
The Bank of England's decision to raise the interest rates to 5.00 percent in unlikely to impact the booming market, as it is the shortage in supplies that is propelling the price rise, he added. "Until more suitable properties are built to satisfy the demands of the buoyant southern economy, their prices will continue to rise.”
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