UK HOUSE PRICES UP 1.2%

House prices in the UK increased by 1.2% in October compared with the previous month, reports the Halifax, part of the Lloyds Banking Group.
The lender said that the housing market had remained “highly resilient” despite weakness and a deteriorating outlook for the UK economy.
Martin Ellis, Halifax’s housing economist, said: “The housing market has proved highly resilient in recent months, despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies.
“The prospect of exceptionally low official interest rates over the foreseeable future is likely to continue to support the market in the face of a very difficult economic climate.
“Both prices and activity levels are expected to remain close the current levels over the coming few months.”
The housing market also saw an increase in activity last month as more surveyors reported that newly agreed sales were on the rise, according to the Royal Institution of Chartered Surveyors.
Completed sales rose to an average of 15 at each branch of surveyors over the past three months - the strongest level since April. New buyer enquiries - a good indicator of demand - edged up as well.
At the same time, the Countrywide group’s quarterly research into the private rental sector shows that tenant demand shot up by 10.8% in the third quarter of this year, compared with the same period last year, and by 11.9% from the second quarter of this year.
“More people are entering the buy-to-let market as a result of this increased tenant demand and the comparably high rate of return from this kind of investment,” said Adam Offer, managing director of leading west estate agents, Besley Hill.
“Prices here have stabilised due to lack of supply and increased demand from buyers.”