Investment Property News - Bueno Investments Limited

Investors Cheered By Price Rises

Property investors have been given a boost as new figures show house prices increased by 1.3% during December.

Halifax said the rise offsets some of the falls seen during the previous three months after prices dropped by 1.3% in November and by 0.7% and 0.6% in October and September.

Total values decreased by 0.8% during the final quarter of the year compared with the previous three-month period, and annual house price inflation also continued to ease during December, falling from 6.3% in November to 5.2%.

However, it still means the price of an average home in the UK increased by around £11,759 during 2007 to stand at £197,039.

Halifax chief economist Martin Ellis said: "The housing market continued to slow in the final quarter of 2007 with prices slightly lower than in the preceding quarter.

"Higher mortgage repayments in response to the series of five interest rate increases between August 2006 and July 2007 and falling real earnings have put pressure on households' income, resulting in a slowdown in both house price growth and activity in recent months."

Back To Main News Menu