6 January 2004, 12:45  UK house price growth picks up in Dec

House price growth in Britain accelerated last month, underlining the continuing strength of the market, said mortgage lender Halifax. Its latest house price index shows that house prices rose 1.8pc in December from November, up from 1.1pc the previous month and marking the fastest growth since February The 12-month figure, however, shows that annual price growth is easing; prices rose by 15.4pc during 2003, down from the 26.4pc increase in 2002.
Halifax economist Shane O'Riordain said that there are "clear signs" that the market will continue to slow down naturally in 2004, although he noted that the three pillars that have underpinned the housing market- low interest rates, good employment levels and good affordability - will continue during the year. The stronger figures in December may prompt the Bank of England to raise interest rates again. It hiked borrowing costs for the first time in almost four years in November, citing a need to curb household spending and "unsustainable" house price growth.//www.fxcentre.com

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