11
Feb
House prices 'show small rise'
Although house prices increased slightly in December, the overall
market is still cooling down, according to figures released by the
Department for Communities and Local Government.
While the average mix-adjusted price of a property in the month
rose from £218,662 to £219,691, annual inflation dipped
to 9.1 per cent, the department said.
A property economist at Capital economics, Ed Stansfield, commented
that the statistics prove the market has become subdued.
"Over the previous five Decembers, prices have risen by an average
of more than one per cent month on month. The annual inflation rate
fell to 9.1 per cent in December, down from 12.4 per cent in the
summer," he told the Associated Press.
He added that the Bank of England's recent decision to trim the
base rate of interest to 5.25 per cent is not enough to restore
confidence in the market.
In January, house price inflation stood at 4.5 per cent, recent
data from the Halifax suggested, as reported by the BBC.