You are here: Home - News -

Market remains strong

  • 10/08/2001
  • 0
The housing market continued to go from strength to strength in June despite negative publicity over...

The housing market continued to go from strength to strength in June despite negative publicity over the property shortage, the foot and mouth crisis and pessimistic economic forecasts.

The latest house price surveys from Nationwide and Halifax report a strong increase in house prices, and forecast a positive outlook for the rest of the year.

Halifax reports that house prices rose by 1.6% in June and house price inflation has climbed to 9.7% ‘ the highest since May 2000. The survey puts the average house price at £92,122.

The report from Nationwide puts the increase in house prices even higher at 1.9%, although the average house price is slightly lower at £89,068.

Alex Bannister, group economist at Nationwide, said: ‘June’s strong monthly increase of 1.9% has pushed up annual house price inflation to 9.3% as strong customer confidence continues to buoy up the housing market. The first quarter had shown signs of a gradual cooling off in London, with the annual price growth slowing to 5.6%. In contrast, the second quarter has seen prices in the capital rise at an annual pace of 10.4%. With the economic outlook likely to deteriorate modestly in the face of a weakening world economy, we are holding our forecast for 7% by the end of 2001.’

However, the National Association of Estate Agents (NAEA) predicted a steadier rise in house prices for the rest of the year. The most recent NAEA survey found that despite a number of regional variations, estate agents around the country predict house prices to have risen by an average of 6% during the year. In Scotland growth is expected to be around 4%, while in the south east and south west prices are predicted to be up 7.2% and 8% respectively.

Hugh Dunsmore-Hardy, chief executive at the NAEA, said: ‘Although house prices did rise at a higher than expected rate during the first half of the year, there are suggestions that sellers are taking the advice of estate agents on prices and they are being realistic about affordability in the marketplace.’


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Richard Beardshaw, head of sales, mortgage intermediaries at HSBC UK for Intermediaries welcoming the brokers to to…
  • We are in Allianz Park today for the first in the series of HSBC UK for Intermediaries Breakfast Seminars
  • At this year’s Later Life Lending Event Richard Rowntree from Bank of Ireland for Intermediaries will be presenting…
Read previous post:
MHBS sees net mortgages rise to 22% of business

Market Harborough Building Society (MHBS) has reported almost a quarter of all their mortgage busine...