Confidence returned to the UK housing market in September, with the net balance of respondents expecting house price to rise moving up to its highest level since May 2007, a survey showed Tuesday.
Data released by the Royal Institute of Chartered Surveyors showed that a net 22% saw house prices rising rather than falling in the three months ended September, the highest balance in more than two years. This comes after a net balance of 10% in August, and stood higher than economists’ expectations for a balance of 16%.
The biggest gains were seen in London, with a net 79% seeing rise in prices rather than falls, while in the South east, the proportion was 52%. However, a net 18% of respondents saw more price falls rather than rises in Yorkshire and Humberside. In Wales, the net balance was 15%.
On Monday, the Council of Mortgage Lenders said the number of house purchase loans in August totaled 52,700, up 29% from the same period of last year. However, approvals fell 5% from July.
On October 7, Fitch Ratings in a report warned that the recent gains in house prices could provide only a temporary respite and expects the prices to fall from its nearly two year peak. The rating agency forecasts house prices to fall 30% overall from its peak in October 2007, with the prices being currently 13% below that peak, having dipped 19% in the first quarter. The fall would bring it in line with the long-term average, Fitch said.
The latest house price data from Nationwide showed that prices rose for the fifth consecutive month in September. House prices climbed a seasonally adjusted 0.9% month-on-month in September, after a 1.4% rise in the preceding month. Further, the Lloyds Banking Group Plc’s Halifax division said on October 6 that house prices climbed for the third consecutive month in September, by 1.6% on a monthly basis compared to a 0.8% rise in August.
The latest quarterly survey from the British Chamber of Commerce released Tuesday said the decline in economic activity in Britain was coming to an end, although most of the rebound is from historic lows.
Data released by the Royal Institute of Chartered Surveyors showed that a net 22% saw house prices rising rather than falling in the three months ended September, the highest balance in more than two years. This comes after a net balance of 10% in August, and stood higher than economists’ expectations for a balance of 16%.
The biggest gains were seen in London, with a net 79% seeing rise in prices rather than falls, while in the South east, the proportion was 52%. However, a net 18% of respondents saw more price falls rather than rises in Yorkshire and Humberside. In Wales, the net balance was 15%.
On Monday, the Council of Mortgage Lenders said the number of house purchase loans in August totaled 52,700, up 29% from the same period of last year. However, approvals fell 5% from July.
On October 7, Fitch Ratings in a report warned that the recent gains in house prices could provide only a temporary respite and expects the prices to fall from its nearly two year peak. The rating agency forecasts house prices to fall 30% overall from its peak in October 2007, with the prices being currently 13% below that peak, having dipped 19% in the first quarter. The fall would bring it in line with the long-term average, Fitch said.
The latest house price data from Nationwide showed that prices rose for the fifth consecutive month in September. House prices climbed a seasonally adjusted 0.9% month-on-month in September, after a 1.4% rise in the preceding month. Further, the Lloyds Banking Group Plc’s Halifax division said on October 6 that house prices climbed for the third consecutive month in September, by 1.6% on a monthly basis compared to a 0.8% rise in August.
The latest quarterly survey from the British Chamber of Commerce released Tuesday said the decline in economic activity in Britain was coming to an end, although most of the rebound is from historic lows.
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