For the fourth month in a row, house prices have risen in August and this is the fastest monthly rate in two and a half years, according to the Nationwide. Reuters UK has reported that the building society believes this is a good indication that the UK property market is recovering.
Nationwide reported that house prices rose 1.6 per cent in August and 1.4 per cent July. This lowers the annual rate of decline to 2.7 per cent from 6.2 per cent.
The upturn is put down to less homes being on the property market and more interest, albeit tentative of house buyers.
Th chief economist at the building society ? Martin Gahbauer ? commented that the low interest rates which are at a record low, have stopped people falling into mortgage arrears. As a result, fewer home owners have been forced to put their houses on the market, which was the case in previous downturns in the market.
Not everyone believes the figures equate to a recovery in the market however. ?I?m still not convinced this marks the start of an upturn,? said Peter Dixon, economist at Commerzbank. ?There?s still scope for a slight leg downwards, but a worse case scenario seems to have been avoided.?
There is still widespread belief that improvement in the housing market in order to fulfil customer demand will not be sustainable. There is still the twin problem of economic weakness and a rise in unemployment which adds to the overall scenario.
The reported average price of a home in today?s market is ?160,224.
