Fall In Price Growth Noted In Halifax House Study

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Article Title: Fall In Price Growth Noted In Halifax House Study
Author: Abbi Rouse
Category: Loans, Mortgage, Personal Finance
Word Count: 519
Keywords: secured,loans,mortgages,costs,house,prices,home
Author's Email Address: abbi.rouse@inter-financial.com
Article Source: http://www.articlemarketer.com
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House prices continued to rise over the course of June, new figures have indicated.

According to research conducted by Halifax, typical property values across Britain increased by 0.4 per cent during the month. With the average home now costing some 197,461 pounds, borrowers may well find their loans secured loans costs increasing. Over the second quarter of 2007 - the three-month period from April to June - house prices were reported to have risen by two per cent, in comparison to the three per cent rise noted in the fist quarter. This rate was also below the 4.2 per cent recorded in the final three months of 2006.

Chief economist Martin Ellis said: "The increases in mortgage rates and the persistence of negative real earnings growth in the early months of 2007 are expected to cause annual house price inflation to slow further over the coming months. Solid economic fundamentals and a shortage of housing supply will, nonetheless, continue to support house prices."

Over the second quarter, properties in Northern Ireland and the Greater London area were reported to have driven growth, up by 8.5 and 4.9 per cent respectively. Halifax also showed that the Irish principality has seen the largest price rises in the country over the last 12 months with a home now costing an average of 228,790 pounds - a rise of 46.7 per cent from last year - homeowners in the area could be set to face increased pressure when making repayments on secured loans. The combined effects of demand from second homebuyers and buy-to-let investors, a "strong local economy" and rising immigration levels was reported to be the force behind the rises.

Meanwhile, homes in the north of England were said to have surpassed the 150,000 pounds barrier for the first time during the last three months. As a result, the Yorkshire and Humber region and Scotland are said to be the only parts of Britain to have an average property price under 150,000 pounds.

Figures from the financial services firm also reported the effects of mortgage rate increases over the past year are set to curb annual property inflation over the coming months. In addition a fall in real income growth could well see borrowers struggle with making secured home loan repayments. Halifax also indicated that disposable income fell by 0.3 per cent over the first quarter of 2007. A successive fall from the previous three months, it is the first consecutive quarter decrease to have taken place since 1999.

Commenting on the figures, Oliver Gilmartin, senior economist for the Royal Institution of Chartered Surveyors (Rics) claimed that although a rise in housing activity is generally noted over the summer months the most recent Halifax study had indicated moderate price growth. "The softer trend in this months housing data will not prevent the MPC from raising interest rates tomorrow as the economy continues to show solid expansion with price pressures remaining a worry," the Rics analyst added. He pointed out that despite even growth slowing to 0.5 per cent over the last three months "this still equates to around 250 pounds a week with affordability deteriorating by the day".

Abbi Rouse writes for the the Loan Arrangers where you can compare and apply online for the best secured loans. Visit Today: http://www.loan-arrangers.co.uk
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