- POSTED: 08 Jan 2014 21:09
This graph is an experimental feature that tracks number of views over time.
British house prices rose strongly last year, a key survey showed on Wednesday, with the market boosted by rising demand amid recovering economic growth.
LONDON: British house prices rose strongly last year, a key survey showed on Wednesday, with the market boosted by rising demand amid recovering economic growth.
Prices rallied 7.5 per cent in December 2013 compared with the level in December 2012, according to a survey by lender Halifax, which is part of the state-rescued Lloyds Banking Group.
However on a monthly basis, house prices fell by 0.6 per cent in December from November. That was the first drop for 11 months and took the average property price to 173,467 pounds (US$284,727, 209,579 euros).
The nation's property market was also bolstered last year by government stimulus programmes and record-low interest rates, analysts said.
"The revival in house prices over 2013 is due to a sharp rise in housing demand coupled with a very subdued supply of homes coming onto the market," said Capital Economics analyst Matthew Pointon.
"That has led to very tight market conditions, and put the ball firmly in the seller's court - homes are selling faster and at a price much closer to the asking price."
He added: "Demand has been bolstered by record low rates, government schemes and fears that house prices are about to take-off."
Halifax forecast that prices will rise by between 4.0 and 8.0 per cent during 2014.
"Mounting signs that the economic recovery is becoming firmly established, together with a predicted decline in unemployment, should further boost consumer confidence over the coming months," said Halifax housing economist Martin Ellis.
Wednesday's survey data was published one day before the latest interest rate decision from the Bank of England.
The central bank is forecast to keep its key lending rate at a record low 0.50 per cent, where it has stood since March 2009 in order to stimulate growth.