Rising property prices still fragile in the United Kingdom

Still tentative upturn for the British housing market. In October, prices of existing homes rose 1.2%, according to the Halifax bank. This is the fourth consecutive month of increase recorded also handle

In recent months the British stone is supported by a double phenomenon: seduced by the attractive interest rates, buyers rushed back into the agencies, and that while the supply of goods sold is maintained at exceptionally low.

However, relapse prices can not be excluded. "Improving market conditions could indeed induce a number of owners to furnish their homes for sale in the coming months," said Martin Ellis economist at Halifax. This increase in supply, so naturally weigh on prices. Add to that the expected increase in unemployment and exit from crisis will be only delayed

UK : Rising property prices confirmed ... yet

New study findings themselves. According to figures released Tuesday by the bank Halifax, house prices have continued to rise in October for the fourth consecutive month.

On average, British buyers have spent 165 528 pounds sterling to purchase a home last month, up 1.2% from September and 4.7% less than in October only 2008. Prices rose more than 7% since April and accumulate in the first ten months of the year a gain of around 3%.

Supply and demand
"Demand for housing has increased in recent months, thanks to very low interest rates, the downward trend in prices began in the summer of 2007, and the surge of consumer confidence," explains Martin Ellis, chief economist at Halifax. This increased demand, combined with the weakness of the housing stock available for sale, could explain the rise in prices. But wait before you scream at the end of the price decline. According to Martin Ellis, "the recent improvement in market conditions seem to encourage more owners to put their property up for sale. If it were true in the coming weeks, this trend could restore the balance between supply and demand for housing, and put an end to rising prices.

The price of UK property resume upward trend

The housing market shows signs of improvement in the United Kingdom. In October, housing prices rose by 0.4%, according to figures from Nationwide. After six consecutive months of recovery, the British stone displays the first annual increase (+2.0%) since ... March 2008. However, the upturn remains fragile. While the contraction of British GDP in the third quarter should prompt the Bank of England to keep rates close to zero next year: the cost of credit will remain attractive for borrowers. But the expected rise in unemployment could at the same time continue to weigh on the housing market.

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