Latest on UK house prices

House prices increased by 1.0% in December, according to the latest HPI from the Halifax, the sixth successive monthly increase, with December's rise slightly below the average for the preceding five months (1.2%).  House prices in the final three months of 2009 were 3.5% higher than in the third quarter, the biggest quarterly increase since 2006 quarter 4 (4.2%).  Prices have increased by 9.4% since reaching a low in April 2009; an increase in the average price of £14,552 over this period.  This follows a decline of 23% between August 2007 and April 2009. House prices in December were 1.1% higher on an annual basis, taking the average house price to £169,042. This is the first increase in the annual rate of change since March 2008.  The annual rate has turned around markedly from a low of -17.7% in April 2009.

Acadametrics and the Financial Times, which produce the only index based on actual transaction prices rather than valuations or asking prices, found that house prices in England and Wales rose 0.8% in December.  This is the eighth month in a row where the FT house price index has risen, although Acadametrics notes that this rate is slowing.  Annually, average house prices are up 4.2% to £214,283, the same as it was in December three years ago.

The latest Monthly Product Analysis from Mortgage Brain shows that the number of live mortgage schemes has climbed for the sixth month in a row.  The total number of live mortgage schemes listed on its sourcing system now stand at 3,534 (as of 4th January 2010), up 6% from 3,337 on 1st December 2009.  The number of mortgage schemes available to intermediaries is now at its highest level since the same time last year and represent a 47% increase in product availability over the past six months.  Trackers saw the biggest increase last month (38%), climbing for the fourth month in a row to represent 1,300 of all available products.  Fixed rate products remain the dominant product type as we start the New Year with current figures listing 2,151 available products following a 5% increase in the past month.

 

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