Housing market regains strength

The housing market showed no sign of cooling off in September after the August interest rate hike, with Nationwide reporting “unseasonably strong” growth.

September’s monthly price index rose 1.3 per cent in September, bringing the average price for 2006 up 8.2 per cent.

The latest price jump is the highest since February 2005 in the early months of the housing boom.

Group economist Fionnuala Earley, said: “A weak patch this time last year, when prices fell by 0.2 per cent, exaggerates the annual increase, but the more recent three-month-three-month series still shows a clear pick up in price growth since July.”

The report also predicted that housing demand will remain firm, especially in buy-let housing where two-thirds of existing landlords hope to extend their portfolios.

© Adfero Ltd

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