House Prices Rise Eight Months In a Row

Written by Becky on Friday 8 January 2010

House Prices Rise 5.9% in 2009

Figures released this week by Nationwide recorded a rise in house prices from 2.7% in 2008 to 5.9% by the end of 2009.

Housing Transactions Up

As house purchase transactions fell by 65% between January 2007 and November 2008, interest rates hit record lows. As a result, potential buyers with enough cash entered the market, leading to a steady pick-up in housing transactions throughout 2009.

The average cost of a home went up for eight months in a row, and in December they rose by another 0.4% to £162,103.

Martin Gahbauer, the Nationwide’s chief economist predicted interest rates would remain generally supportive for the housing market and mortgage borrowers during most of 2010.

Mortgage Lending

Gross mortgage lending totalled an estimated £12 billion in November 2009, a 10% drop from £13.3 billion in October 2009, and down 14% from £13.9 billion in November 2008, according to new data from the Council of Mortgage Lenders.

Although the 10% fall is a little larger than normal, the CML does not expect this position to change much in the coming months, foreseeing steady market conditions in 2010.

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