House Prices Surge

UK House prices have surged again according to London mortgage broker Capital Fortune.

Citing new figures today published by the Halifax and supported by a 36% increase in enquires to it’s Online Mortgage Service, Capital Fortune predicts that activity in the British housing market is likely to increase in the coming months as the number of mortgage approvals for house purchases rose to their highest level in more than a year in June and July.

Rob Killeen, Business Manager at the independent mortgage advisers suggested that new purchasers are clearly re-entering the housing market and this trend has been assisted by the historic low level of UK interest rates. But, he warned that if current prices continue to rise at this rate it will once again reach the danger point of not being supportable though earnings, rents and general economic uncertainty.

Political and economic commentators maintain that given the expected rise in unemployment to well over £3m, it is unlikely that house prices can be sustained for long at the very strong rate observed over the last few months.House prices have been remarkably resilient so far this year, despite a recessionary economic background with sharply rising unemployment.

According to the Halifax, house prices rose a further 1.1% from June. This further confirms last week’s announcement by Nationwide that prices rose 1.3% month-on-month in July after climbing a revised 1% the previous month.Prices had been falling since April 2008 on an annual basis and from June 2008 to June 2009 there still remains an overall 15% fall.For further information on this article, please call our Press Relations Team on 0845 3 630 430 or visit us at www.capitalfortune.com