29 September 2010

The Land Registry have reported that house prices in August rose by 0.3%, indicating that the market is in better shape that many have predicted.

The average house price is now £167,423, with transaction level figures showing sales reached 53,089 a month, on average, between March and June. This is a significant increase on the 43,825 a month, on average, during the same period in 2009.

The Land Registry showed rises in Wales, the South-East, London and the Midlands.

The Land Registry's figures have been further supported by the Nationwide, who also reported house price rises for August, as they climbed by 0.1% during the month. Martin Gahbauer, Nationwide's chief economist, believes that the future direction of house values depends on whether new properties would continue to flood the market. Many sellers can now list their houses, without the red tape of a Home Information Pack, and 'test the market'. This means that, although house prices would remain stable, there would be little activity.

Despite these positive noises the UK housing market needs to maintain concentration, with the decrease of mortgage volumes threatening to disrupt the recovery. 

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