<< Most Recent Articles

Minimum average property price 'is £100,000'

There are now no towns in the UK with an average property price below £100,000, according to new figures.

Halifax stated that while there were more than 200 towns with an average price of less than £100,000 five years ago, there are now none.

Overall, house prices rose by 2.8 per cent between the final quarter of last year and the first three months of 2007.

However, the firm said there was evidence of reduced activity in the housing market.

Martin Ellis, chief economist at Halifax, commented: "House prices continue to rise in a tight market but there are emerging signs that pressure on householders' finances, partly due to the rise in interest rates since last August, is dampening housing demand."

He added that consumers would soon be hit by the impact of higher interest rates, negative real earnings and growth and above inflation council tax bill increases.

Mr Ellis said that all these factors would contribute to slower house price growth over the coming months, adding that the prices would remain high due to a shortage of available housing.

According to homelessness charity Shelter, house price inflation has made it 93 per cent more difficult for first-time buyers to get on the property ladder than it was a decade ago.

Click here to see how much you could borrow with a Lombard Direct personal loan.

23/04/2007 14:58:59

Most Recent Articles