House prices average £200,000 again (From Chorley Citizen)

House prices average £200,000 again

10:17am Wednesday 13th January 2010

© Press Association 2009

The average house price has broken back through the £200,000 barrier after rising by 1.7% during November, Government figures have shown.

The average UK home now costs £200,454, 0.6% more than in November 2008, according to Communities and Local Government (CLG).

It is the first time that annual house price inflation has been positive since June 2008 as the property market continues to recover.

But separate research from the Royal Institution of Chartered Surveyors showed that the rate at which prices are rising slowed during December as the gap between supply and demand narrowed.

RICS said 30% more surveyors reported price increases during December than those who saw a fall, down from 35% more in November.

It attributed the slowdown to the traditional seasonal lull over the Christmas period, as well as a rise in the number of homes coming on to the market, easing the current mismatch between supply and demand.

More surveyors saw an increase in new instructions than those who reported a fall for the seventh month running, as recent price rises tempted homeowners to put their properties up for sale.

The group said that although demand was continuing to outstrip the supply of properties, the gap was narrowing, with the proportion of surveyors reporting a rise in inquiries from new buyers at its the lowest level since last January.

Thirteen per cent more surveyors expect further price rises during the coming three months than those who think there will be falls, but only 6% more expect sales levels to continue increasing, down from a balance of 20% in November.

The RICS survey also continued to pick up considerable regional variations in the rate at which house prices are recovering.