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House prices continue to rise

The housing market continued to demonstrate significant growth during October, according to the latest figures published by Land Registry.

28th November 2006 16:57

The housing market continued to demonstrate significant growth during October, according to the latest figures published by Land Registry.

House prices in England and Wales rose by an average of 1.2 per cent compared to the previous month, while the annual rate of growth reached seven per cent.

However, Land Registry states that price increases within the market are being "driven" by the strength of property in London and the south-east, where the annual rate of house price growth was above the rest of the country for the eighth month in a row.

"This apparent return to increased house price inflation contrasts with the relatively flat growth exhibited over the last two years," Land Registry states.

Commenting on the housing market earlier in the month, Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors, said that considering the present strength of the economy, it would take "several rounds" of interest rate increases to slowdown the housing market.

Source:http://www.londonstockexchange.com/en-gb/pricesnews/investnews/article.htm?wbc_purpose=Basic?wbc_purpose?ArticleID=17995305

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