House prices rise again

A new survey has shown that house prices are on the up again.

The Financial Times House Price Index for February showed that the average home in England and Wales is 0.5 per cent more expensive than it was in January, at £231,530.

In January prices were up by 0.2 per cent.

Annual house prices inflation was down over the last 12 months from 6.8 per cent to 6.1 per cent, but this was a reflection of the fact that February 2007 saw higher monthly inflation.

Survey compilers Acadametrics said: "Any correction [in prices] must be viewed in the context of the strong performance of the market over recent years and the strong fundamentals underpinning the market, ie continued demand and limited supply."

Both Acametrics and Halifax last week have suggested that the housing market will not see a large correction due to factors underpinning it such as high employment levels.

Those hoping for a major correction to obtain a house more cheaply may decide to opt for the self build option to achieve this aim instead.


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