UK House Prices Situation: Strong

UK House Prices Forecast: Will slow in 2007, but should remain firm

October Price Rises More Than Double Forecast

The average house price in the UK rose by 1.7% in October – more than double the 0.7% forecast by analysts. This is the highest rise since April, and means that average prices have risen by 8.6% over the last year, according to Halifax figures released this week.

Halifax chief economist Martin Ellis said that "higher utility bills and mortgage rates are expected to gradually dampen demand", but most analysts agree that it is hard to predict the extent to which the market may slow next year.

One of the contributing factors to recent rises is thought to be the reduced stock of properties available on the housing market, with competition for these properties leading to a greater than expected rise in prices.

17% Rise in Properties Sold This Year

There has been a 17% rise in the number of properties sold in England and Wales this year, according to new figures released by the Land Registry. They also revealed that the average home in England and Wales is now worth £211,453.

Terraced Houses Rising Fastest

Newly-published Land Registry figures have shown that terraced houses have seen the greatest price rises over the last year, with an average 10.16% rise. Slowest risers were detached houses, which have only appreciated an average of 5.96%. This is probably a result of the relative affordability of terraced houses, which are often the most accessible type of housing in large towns and cities.