House Prices Rise 9.9% in 2006

Statistics show that the UK housing market has remained remarkably resilient with house prices rising nearly 10% in the last years. Industry experts are divided as to how long house prices are likely to continue rising. However with a continuing housing shortage and low interest rates it is likely first time buyers will continue to find it very difficult to get on the property ladder.

House prices across the UK rose by an average of 9.9% in the course of 2006, according to the Halifax bank.

The report from the country's biggest mortgage lender confirms the view that property price inflation accelerated last year.

The biggest increases were in Northern Ireland where prices rose by 53%.

During December the average UK price fell 1% to £186,035, but the Halifax said that did not necessarily mean the market was cooling.

"It remains too early to conclude that this indicates a genuine slowdown in the housing market," said the Halifax's chief economist Martin Ellis.

"Overall, prices in the final quarter of 2006 were 4.2% higher than in the previous quarter, marking the strongest quarterly rise since 2004 Q2," he pointed out.

From BBC economics

Related links

• Article: Will House Prices rise or fall in 2007? by R.Pettinger
• UK house Prices
• House of Cards article by Economist suggesting In many countries the stockmarket bubble has been replaced by a property-price bubble. Sooner or later it will burst, claims Pam Woodall, our economics editor