“Prediction is very difficult, especially if it’s about the future,” Niels Bohr, the Nobel-winning physicist, once pointed out. Britain’s economists and potential homebuyers alike were left with a sense of frustration on Tuesday as the housing market continued to behave with complete disregard for what forecasters have been predicting for this year. In short, house prices have risen again.
David Wighton: Business Editor’s Commentary, TimesOnline – 1 July 2009
According to the Nationwide Building Society, the average unadjusted UK house price rose by £2,400 to £156,400 in June. It has now risen each month for four months and has soared by almost £9,000 from the low point in February. Even after seasonal adjustment — which strips out the normal boost given to prices by frolicsome spring buyers — prices are up by an underlying 2.9 per cent since February.
These are significant rises over several months and are roughly echoed by similar figures from the Halifax. Some parts of the UK are showing price rises normally associated with boom times. Quarter-on-quarter prices in Wales are up by 7.7 per cent; East Anglia is up 5.2 per cent, while in Greater London prices have bounced 4.8 per cent higher.
