Halifax reports increasing mortgages prices

Date:Tuesday 3rd November 2009
Author: Max Freedman

House prices rose in value by 1.2 per cent in October, reports the Halifax house price index.

Although the figure is 7.1 per cent higher than in April, where prices hit a low of 17.7 per cent, it is still 4.7 per cent lower than October last year.

Housing economist with Halifax Martin Ellis said housing demand has risen due to the decline in property prices, reduced interest rates and a return in consumer confidence as the economic situation improves. This has resulted in a shortage of available properties, which has in turn pushed up prices.

Homeowners have been encouraged by this improvement and have begun to put their properties onto the market, in a move which "could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance," Mr Ellis added.

The mortgage lender also reported in September that 31 per cent of house buyers had been exempt from paying stamp duty after the minimum threshold for paying was temporarily raised to £175,000.

Over a quarter of those who benefitted from not paying the tax between September 2008 and June 2009 were first time buyers.