Increase in price of houses

Dec 2 2009 by Iain Laing, The Journal

HOUSE prices rose for the seventh month in a row during November but there are further signs that the pace of the recovery is beginning to ease.

The cost of a home increased by 0.5% during the month, pushing average property prices up to £162,764 – a level last seen in August 2008, according to Nationwide.

Martin Gahbauer, Nationwide’s chief economist, said: “The monthly rate of house price inflation was unchanged in November at a seasonally adjusted 0.5%, leaving the average price of a typical property 2.7% higher than a year earlier.”

But there are signs that the pace of the recovery may be moderating, with the 0.5% rise recorded for both October and November, the smallest since prices stopped falling in April.

The three-month on three-month growth rate, which is considered to be a smoother indicator of the underlying trend, also moderated during November to 2.8%, down from 3.5% in October and 3.8% in September.

The figures come after the Bank of England reported the number of loans approved for house purchases had risen to 57,345, their highest level since March 2008.