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June rise marks “turnaround” for house prices

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  • 13/07/2011
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June rise marks “turnaround” for house prices
House prices in England and Wales edged up 0.3% over June, the most significant increase in 11 months, according to national estate agent Chesterton Humberts.

It said it believes the modest shift marks the beginning of a turnaround for UK house prices overall, with the average house price in June estimated at £175,477.

However, in contrast, other recent house price indices, including Hometrack and LSL/Acadametrics, have shown falling house prices for June and muted forecasts.

Chesterton Humberts produces its information with the Centre for Economic and Business Research (CEBR), bringing together leading house price indices.

Its said that house price growth softened in H1, dampened by consumer fears over public sector cutbacks and associated increases in unemployment.

However, Chesterton Humberts said the shortage of available housing in addition to overseas demand and the cheap pound have helped push prices up.

The three-month rate of growth, while still down 0.3%, is up from -1.5% in January and is at its highest rate of change since November 2010 having risen for the last five months, the estate agent found.

Robert Bartlett, chief executive officer at Chesterton Humberts, said: “Last months results were encouraging, but this month the poll of poll results shows a solid strengthening with house prices up across the country.”

Douglas McWilliams, chief Executive of CEBR, said the housing market has performed relatively well over the last month.

He said: “Buyer interest has held firm, which is down to a more optimistic view of the future as improvements in the wider economy, supported by low interest rates have instilled confidence. There is still however, a two-speed recovery in house prices, with houses at the bottom end of the market still seeing sizeable falls.”

Bartlett, added: “London is also the only part of the UK where house prices are now higher year on year. House prices have risen by 3.5% over the year to June.

“Traditionally July and August are quiet months with little market activity. At this point however, many of our London offices are working at peak levels with properties regularly turning over within a month. The key to continuing recovery is whether the market sustains this level of activity through the rest of the summer.”

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