Property prices for UK houses are now at the same price as September 2008, according to the latest research from Nationwide.
In this article:
- Property prices rose by 0.9% in September, the fifth consecutive monthly increase.
- High supply of rental property raises questions about durability of price recovery.
The latest figures into the UK housing market for 2009 show that house prices rose on average 0.9% in September, 2009, the fifth consecutive month of property price rises since house prices were at a stand-still or in decline in many parts of the UK earlier in the year.
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The 3 month on 3 month rate of change - generally a smoother indicator of the near term trend in property prices - rose from 3.3% in August to 3.8% in September, the highest level since August 2004, the Nationwide revealed.
“At £161,816, the average price of a typical UK property was essentially unchanged from a year earlier, representing the first time since March 2008 that the year-on-year rate of change has not been negative,” commented Martin Gahbauer, Nationwide’s Chief Economist, on the results.
“Over the first nine months of 2009, the seasonally adjusted index of house prices has risen by 4.1%, though relative to the October 2007 peak it is still down by 13.5%.”
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The further increase in house prices is very much consistent with improvements in a broad range of economic and financial indicators over the last few months, all of which suggest that the most intense phase of the recession and financial crisis has probably passed.
“Given that the housing market still faces considerable headwinds in the form of high unemployment, restrictive credit conditions and an impending withdrawal of the stamp duty holiday, it would be surprising to see house prices continuing to increase at the very strong rate seen in recent months,” concluded Gahbauer.
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