Numerous factors indicate that the
housing market may be coming out of the slump that began in the summer of 2004.
The latest survey by
Halifax indicates that, for the third month in a row, house price inflation rose in October. Although actual
house prices remained stable between September and October, compared with last years figures, prices are up 3.9%. The average house now costs £168,210.
The Halifax report agrees with a
Nationwide report, also published this week, that indicates house prices are on the way up. Halifax economists stated that the market has been undergoing a consistent period of strengthening over the course of the latter part of the year. Prices for the August, September, October period were up 2.9% on the previous three months, according to Halifax.
These figures come at a time when
mortgage approvals for
house purchase are also steadily climbing, often perceived as a healthy indication of a market upswing. However, economists warned that the market wasn't ready for an increase in house prices. The historically high prices when compared to earnings, and the concerns of record
debt levels were perceived as being likely to have a stalling affect on a sharp increase in the market.
Mortgage approvals, according to the
Bank of England, rose in September to their highest levels since June 2004.
