House prices rise £150 a day

19 April 2004
A new report has shown that house prices are rising at £150 a day.

Rightmove, the property website, has revealed that house prices in England and Wales have leapt eight per cent since the start of the year, double the rate recorded last year.

The increases mean that the average house will now set consumers back £184,582 - a rise of £13,647 from the start of the year and a staggering 50 per cent increase on the start of 2002.

Rightmove explained that while all parts of England and Wales have experienced rises in price, Yorkshire and Humberside rose the fastest at 5.8 per cent. The West Midlands saw the next fastest increase with a 5.3 per cent rise and East Anglia followed with house prices leaping 4.1 per cent over the month.

London and the South East are growing at the slowest rate - with one per cent and 1.9 per cent rises respectively.

The property website also disregarded fears of an impending house market crash.

Miles Shipside, Rightmove director, explained: "Mistakenly [doom-mongers] look at the ratio of house prices to incomes and conclude that affordability of properties is becoming stretched and that prices will fall.

"What they need to look at is affordability of homes at current interest rate levels of around five per cent or so.

"Clearly, a mortgage is much more affordable at five per cent, or even a bit higher if the monetary policy committee decides to raise rates, than it was at between ten per cent and 15 per cent, the levels that mortgage rates hit back at the beginning of the 1990s."