You are here: Home - Uncategorized -

House prices still strong but pressure starts to show

0
Written by:
05/04/2007

Despite the recent interest rate rises, house prices are still increasing at a steady rate as people continue to make a saving and investment in property, according to the country’s largest mortgage lender, Halifax.

The bank reported that prices rose by 1% in March, with the average house price now standing at £194,362. A buoyant economy and a shortage of property on the market were the main factors keeping prices strong.

However, Halifax noted that there are signs the pressure of three interest rate rises since August are beginning to pinch householders’ budgets and are suppressing some of the exuberance of the market.

“We expect the recent rises in interest rates, negative real earnings growth and above-inflation council tax demands to lead to slower house price growth over the coming months,” said Halifax group economist Tim Crawford.

House prices increased in all regions of the UK in the first three months of the year, said Halifax, with Scotland showing the biggest rise by a considerable margin at 5.4% and Wales following behind with a robust 4.9%.

The slowest areas were the East Midlands and Yorkshire, which edged up marginally at 0.2% and 0.6% respectively.

The figures also showed that the average price of a house in Northern Ireland has broken the £200,000 barrier for the first time.

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Younger pensioners take full force of new tax blow

Gordon Browns’ Budget, as well as making the lowest paid worse off with the abolition of the 10p minimum tax...

Close