House prices rise as 2007 ends
Hilary Osborne wow gold
Guardian Unlimited,
Tuesday January 8 2008
House prices rose by 1.3% in December, following three months of falls, the UK's biggest lender said today.
Halifax said the mixed pattern of rises and falls of the past few months was consistent with a subdued market and predicted that prices would remain flat in 2008.
December's surprise price rise went some way towards reversing the falls seen in preceding months, and meant that by the end of 2007 the average cost of a property in the UK was £197,039 - £11,759 more than at the start of the year.
However, the quarterly figures, which give a better picture of long-term trends, showed the market had slowed in the final three months of the year, with prices 0.8% lower than in the summer months.
And despite the rise, the annual rate of inflation fell to 5.2%, the lowest level since 1996, and down from 6.3% in November and August's peak of 11.4%, Halifax said.
The lender added that 2007 was just one of two years in the past six that prices had not risen by more than 8%.
Looking ahead to this year, Ellis said he expected strong economic fundamentals to support house prices, with the UK expected to deliver its 65th successive quarter of GDP growth.
