House prices are still rising, according to the latest monthly survey from the Nationwide building society.Prices went up by another 0.5% in May, pushing the price of the average UK home up to £169,162 which was £15,000 more than a year ago. Annual house price inflation fell slightly last month though, from 10.5% to 9.8%. But the Nationwide said prices might keep on rising modestly as few properties were being put up for sale.
"Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months," said the Nationwide's chief economist Martin Gahbauer. "The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices."
Going up
Prices have now gone up in 12 of the last 13 months, acccording to the Nationwide, a consistent level of price increase which has taken many observers by surprise. With the level of sales still very low by historical standards, prices appear to being pushed up by a relative shortage of properties for sale.
"Since reaching a trough in February 2009 - following a drop of 19.3% from their October 2007 peak - house prices have risen by 12.2% and are now just 9.5% below the October 2007 peak," Mr Gahbauer said.
The Nationwide's report is very much in line with other house price surveys. Its rival the Halifax has recently put annual house price inflation at nearly 7%, the Communities & Local Government Department calculated it at 9.7%, while the Land Registry has put it at 8.5% for England and Wales.
Hips
The recent abolition of the requirement for house sellers to provide a home information pack (Hip) to prospective buyers has also had a positive affect on the Bristol housing market.
“The removal of Hips has definitely seen more sellers come to market and so the fresh stock will increase over the coming months – great news for all homebuyers – this coupled with very steady increases in values means we are slowly returning to a normal market” added Adam Offer of Besley Hill.
Source BBC News 03.06.10
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