House Prices Still Rising As Banks Increase Lending For Property

New figures from the Halifax released today show UK house prices rising for the third consecutive month in September, the first quarterly increase for two years. Increased demand and a lack of supply were cited as key to the rise.

Courageously hedging his bets Halifax housing economist Martin Ellis noted this 'could change and "constrain" prices in the coming months given the economic climate.' according to a new BBC report.

The Halifax said that while prices in the three months to September increased by 2.8% compared with the previous quarter to £163,533 the annual rate of change showed a drop of 7.4%.

Meanwhile the Land Registry recently said that house prices in England and Wales dropped 9.4% since August 2008 bringing the average home price to £155,968.

Both of these reports contrast with the Nationwide who said last week that prices in September had returned to the same level seen a year earlier.

However, there is general agreement that low interest rates and fewer properties on the market have been supporting the recent recovery in prices. Furthermore it seems the credit squeeze may be over.

Even as Brits cut back on consumer debt, as we reported last week, property lending is rising. Figures from the Bank of England show mortgage approvals have risen through most of the year. And a recent survey published today summarises “The international real estate lending market has improved in the second half of 2009, with more banks willing to lend sums over 20 million pounds on British commercial property”.

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