UK House Prices on the Up? Article Published: 12:44 11/09/2009 Article Classification: The Maroccana Fund
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The Halifax reported this week that house prices in the UK rose by 0.8% in August compared with July, the second monthly rise in a row. Better affordability and continuing low interest rates are cited as the driving factors. A lack of supply is probably also playing a part.

Those low interest rates have been kept low as the Bank of England announced, following its September meeting, that rates are to be kept at 0.5%. This was announced on Thursday, the day on which the FTSE 100 index edged above 5,000 points for the first time since October 2008.

In other news, respected researchers the National Institute of Economic and Social Research said the UK economy grew 0.2% in the three months to August whilst official data this week showed that UK manufacturing output rose at its fastest rate in 18 months in July. Nobody is expecting a quick return to good times but these are all encouraging signs for the UK economy. News, both good and bad, can often be self-fulfilling, good news reassures consumers who then feel better about spending money. That spending delivers even better news. Weve seen the reverse for the last year.