UK House Prices Increased Again Article Published: 13:54 17/04/2007 Article Classification: Olive Tree Head Office
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UK House Prices up Again April 17th 2007

March 1st 2007 - Figures from a leading Building society reveal UK property prices during February continued upward, despite three recent interest-rate increases in the last five months. The annual house-prices inflation rose from January's 9.3 per cent to 10.2 per cent. There has been a monthly increase in house prices from 0.3 per cent in January, to 0.7 per cent in February 2007.

An important factor in the continuing property price-hike is the growing shortage of homes for sale. The UK housing shortage is going to be a slow and difficult problem to solve, especially in the south-east, and is likely to continue having an effect on house prices for the foreseeable future.

UK Mortgage approvals increase

March 1st - The Bank of England issued figures for February 2007, showing lenders had approved 120,000 loans for house purchase - this is a rise from 114,000 during December. This is higher than economists had predicted and reveals a continuing strength in property prices, despite the higher interest rate. The Bank of England's Monetary Policy Committee, who decide on the UK basic interest rate, may see these figures and the February property price rises as a reason to consider further interest-rate increases to control the economy, especially the inflation rate.

January UK Interest Rise to 5.25%

January 11th 2007- Today brought a surprise interest rate rise from 5 per cent to 5.25 per cent by the Bank of England's Monetary Policy Committee, in an effort to restrict inflation. Inflation has risen above the government's 2% target. This is the third rise in five months.
House owners with a £100,000 repayment mortgage will now pay £16 more a month on their mortgage. Analysts are predicting further rate rises, perhaps as soon as next month. The latest inflation rate figures are expected later this month.