UK House Prices Still Rising According to Halifax

UK house prices in 2009 have entered into positive growth territory according to the latest data released by the Halifax.

The lenders index showed that the average UK house price was £112 higher in August this year, than December last year, meaning that the average house price has grown in 2009. Analysts who have forecast that prices will end the year higher than they started it will be rubbing their hands together, whilst nervously waiting to see if we can survive 2009 without any major falls.

While price growth has turned positive for 2009 so far, in the three months ending August last year, house prices were still 10.1% higher than in the same period this year.

On a monthly basis the Halifax recorded a 0,8% increase in August, and a 1.7% increase on the tri-monthly measure, which is less volatile and widely regarded as a more accurate indicator of short term trends.

No one is denying that prices are currently rising. But in my opinion (as my regular readers will know) the rises are fuelled entirely by unrealistic rises in certain areas where slightly increased demand is exposing the massive supply shortfall of quality property for sale.

If it weren't for properties selling at prices near to what they would have done at the peak in these areas, then prices would still be falling, and if supply increases in these areas -- i.e. if rising unemployment or the Bank of England upping interest rates triggers a spate of repo properties -- then prices almost certainly will fall again.