You are here: Home - News -

House prices bolstered by summer increase

by: By Mira Butterworth
  • 08/09/2003
  • 0
House prices continued to rise over the summer despite concerns about the market overheating, accord...

House prices continued to rise over the summer despite concerns about the market overheating, according to the latest figures released by Nationwide and Halifax.

Nationwide said the average British house price rose 1.1% in August and now costs £129,258 – £1,000 more than in July and more than four times the average annual salary. The mortgage lender has revised its forecast for growth during 2003 from 10% to 13%.

Alex Bannister, group economist at Nationwide, said: “Although house price growth is set to slow, the current strength in the market is likely to be sustained for a number of months.”

He explained house prices are well supported by a weak supply of new property, low real mortgage rates, continued economic growth and poor returns from other asset classes.

Halifax said house prices had increased by 1.3% over the same period, with the average price now reaching £133,908. It added that the end of the war in Iraq had boosted confidence, while the highest level of employment on record and the lowest interest rates since the 1950s continued to underpin strong housing demand.

Hometrack, which monitors the London housing market, has also revised its house price predictions for the year to 0.0% from -5%, in January. During August, five London boroughs saw price rises, eight saw price falls, and 20 boroughs saw no change.

Sales prices as a percentage of asking prices has sunk to a low of 91% in April, but rose again in August to 92.3%.


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.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
AToM to seek direct authorisation from FSA

Packager, All Types of Mortgages (AToM), will apply for direct FSA authorisation for both regulated ...