House prices rise £2,000 in September

06 October 2003
The UK's biggest mortgage lender has revealed that house prices are continuing to rise by as much as 1.5 per cent or £65 a day.

A survey by The Halifax showed that last month the cost of the average UK home rose by £1,960.

The September rise underlines the renewed strength of the property market, Halifax claims.

Analysts had been predicting a downturn in the UK property market following the steep rises in property value in recent years. However, September's 1.5 per cent rise was the biggest Halifax has recorded since May.

The typical home is now worth £135,958, up a massive 18.6 per cent on a year ago, when the average home cost just £116,663.

Every region of mainland Britain, including London, enjoyed price growth during the July to September period, with the steepest rise recorded in Yorkshire and the Humber (up 5.3 per cent).

"A combination of low interest rates and high employment levels continues to support housing demand," said Martin Ellis, chief economist at the Halifax.

Capital Economics, which has been predicting an impending sharp fall in the property market has now admitted that it "seems likely that national average house prices will continue to rise for the next six to nine months".