10 July 2001, 14:19 UK house price rise in Q2 2001 fastest since Q3 1999 - Halifax
LONDON (AFX) - UK house prices rose 4.1 pct in the second quarter
of 2001, the fastest increase since the third quarter of 1999,
according to Halifax.
On an annual basis, house prices raced to 7.7 pct in the second
quarter from 3.1 pct in the previous quarter.
The biggest quarterly rise in prices were recorded in Greater
London, where prices rose 7.1 pct, followed by a 5.5 pct gain in the
North West. The increase in London represents the sharpest since the
last quarter of 1999.
Annual house price inflation in Greater London was at 17.0 pct in
the second quarter compared with only 6.4 pct in the preceding quarter.
The North-South divide continues with prices growing substantially
faster in the South compared with the Midlands, Northern England,
Scotland and Wales.
Gains in London also widened the price gap with the national
average. Prices in London were a good 87 pct above the national average
in the second quarter.
Halifax group economist Martin Ellis said the recent series of
mortgage rate cuts, supported by the continuing decline in unemployment
and the healthy state of the household sector's finances has stimulated
the renewed buoyancy in house prices.
"The prospects for the housing market over the second half of 2001
remain positive with prices set to continue rising. Slower economic
growth should, however, constrain the market and is expected to cause
house price inflation to ease over coming months. In addition, high
house price to earnings ratios in southern England are likely to limit
house price growth in this part of the country," he said.
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