The sudden rise in prices cannot be seen as a dependable trend in the property industry. This is because the effective rise in rates took place only in the last two months. All this reason for excitement doesn’t really speak of the yearly figures. The years average was a little more than five percent.  London was the only locality where one could see growth in the house price increase rate this year. Every other area had their prices falling. A couple of areas saw their house prices fall namely South West and East Anglia falling around two percent and exactly one per cent respectively.  The overall picture though is not bad.

The reasons for this “looking up” of the market is purportedly due to the rise in the employment numbers by three hundred and twenty six thousand and the slack in the interest rates in August which allowed the mortgage payments to remain close to the yearly average as a percentage of the borowers inflow of cash. The graph should show the same constant growth. The rise in prices should grow by at least three percent.

Twelve months more of this behaviour in the housing market and there may well be no sudden rises and falls in prices. Halifax had noted a greater increase in the price of houses that most other bodies. The thing is whether there will be a big betterment of house prices or if there will be only a small growth in them. Now the signs speak that there will be no such development for some time.