Expert: House Price Index shows 'buoyant picture'

Tuesday, December 8th 2009

The Royal Institute of Chartered Surveyors (Rics) says the latest Halifax House Price Index results represent a "buoyant picture".

Simon Rubinsohn, chief economist at Rics, noted that some house price figures suggest a "slackening in momentum", but the latest index shows an increase of 1.4 per cent in November.

He said the increase is likely to continue in early 2010.

Buyers can now expect to pay an average of £167,664 per house and "increasing demand and low supply are causing house prices to rise" according to the index.

It is now the fifth consecutive month that Halifax has reported increasing costs.

When looking at a straight year on year comparison, house prices are now higher than in November 2008, Mr Rubinsohn said.

But the latest figures are "still 16 per cent down from the high water mark", he added.

"The recovery in house prices since the spring has been driven by an increased demand for property", noted housing economist Martin Ellis in the Halifax report.

Prospects for the development of the housing market will depend on the evolution of the UK economy, according to Mr Ellis.