RSS FeedsHouse prices taking a turn for the better
10/01/2008
House prices have taken a turn for the better as information from lender Halifax suggests. Figures show that a 1.3% increase is the first positive data seen in the last three months.
According to Martin Ellis, the Chief economist at Halifax, he commented “This mixed pattern of monthly price rises and falls is a typical characteristic of a subdued market”.
With the current economic climate no in favour for mortgage consumers the news came as bit of surprise to many industry specialists as many had predicated quite the opposite. Speculation from Halifax suggests that possible two interest rates cuts could be on the cards by the Bank of England this year. The UK economy has evidently seen better times and a more upbeat feel about it, however the current state of house price growth could be due to yearly mortgage interest rate raises in the past 2 years.
Some industry economists have strong feelings that due to poor festive season trading figures coupled with general loss in confidence in the economy there could be reason to further cut interest rates. Some believe it could be as much a 1 percent and as quick as Thursday this week.