British Home Prices Up 1.1% In July: Survey

Source : The Business Times, August 6, 2009

Demand rises on affordability and low interest rates

(LONDON) British home prices rose by 1.1 per cent in July from the level the previous month, but fell over 12 months, a survey from home-loans provider Halifax showed yesterday.

Halifax - part of the state-controlled Lloyds Banking Group - added that the prices of homes in July were 12.1 per cent lower compared with the level in the same month of 2008.

'Demand for homes has risen, albeit from a very low base, since the start of the year, driven by improvements in affordability and low interest rates,' said Halifax housing economist Martin Ellis in a statement.

He added: 'Higher demand has combined with the low levels of property available for sale to boost sales activity from exceptionally low levels and support prices over the past few months.'

According to Halifax, the average cost of a British home stood at £159,623 (S$387,548) in July 2009.

Last week, another major home-loans provider, Nationwide, had said that British house prices rose by 1.3 per cent in July from June, leaving the average cost of a home at almost £159,000.

Nationwide had also said that prices were 1.3 per cent higher so far this year and could finish slightly higher for the year as a whole. -- AFP