British house prices rebound from record slump: Halifax

4th November 2010, Comments 0 comments

British house prices rebounded in October at the fastest pace for 18 months after a record plunge in the previous month, home-loans provider Halifax said on Thursday.

Prices soared by 1.8 percent last month, after tumbling by 3.7 percent in September, mortgage provider Halifax said in a statement.

"There has been a very mixed picture of monthly house price rises and falls throughout 2010, which continued in October with prices rising by 1.8 percent following September's decline," said Halifax housing economist Martin Ellis.

Mortgage provider Halifax, which is part of Lloyds Banking Group, added that the average home price stood at 164,919 pounds (187,418 euros, 266,913 dollars) in October.

And the lender also forecast that house prices would not fall sharply for a long period of time.

"An increase in the number of properties available for sale in recent months, together with a decline in demand, has put some downward pressure on prices," added Ellis.

However he added: "We do not believe that prices are set to fall sharply over a sustained period.

"Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners."

House prices in October 2010 were 1.2 percent higher compared with 12 months earlier, Halifax added.

© 2010 AFP

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