UK house prices rose by 0.4% in September after standing still in August, according to a survey by property website Hometrack.
The areas reporting the highest rises in Hometrack’s survey included: Shropshire (1.8%), Merseyside (1.4%), Mid Wales (1.4%), North Wales (1.3%) and Cumbria (1.2%).
Four areas reported house price falls: Surrey (0.4%), north-west London (0.4%) Berkshire (0.3%), and Suffolk (0.1%).
Hometrack added that prices are rising the fastest in the more affordable regions of the country.
The 10 regions with the highest house price rises have an average house price of £102,400, while the 10 regions with the lowest house price rises have an average house price of £213,760.
The number of sales agreed rose 2% in September. Sales prices achieved as a percentage of asking prices rose for the second month running to 94.6%, from a low of 94.3% in June.
John Wriglesworth, Hometrack’s housing economist, said: “The housing market is definitely returning to a buoyant phase, with strong house price rises in most areas of the country. Clearly houses are still affordable for many homebuyers.
“With interest rates at a 50-year low, lenders have been showing signs of relaxing their lending criteria, with some allowing buyers to borrow over eight times incomes.
“Provided borrowers take on medium term, fixed rate mortgages such lending multiples still imply that future payment commitments will remain relatively low compared with their incomes.
“Continuing low unemployment and strongly positive demographic factors, particularly a fast growing population with an inherent desire to become homeowners, all point to a sustained and healthy housing market.
“The many doom mongers who have been predicting a crash over the past two years are looking rather foolish.”
References: EGi News 29/09/03
