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22nd March 2007 House Prices Up in February   February 2007, small the price of an average house in the United Kingdom rise to £174,706, this shows a monthly change of 0.7% ( January was 0.3%.) The above amount equates to an average increase in property value of nearly £40.00 a day. Although mortgage lending for February was at at all time high for the month, this data does suggest that interest rates may be starting to cool the housing market a little. Although interest rates were not raised in February, it is a distinct possibility they will be raised again shortly. Consumer spending in February was at its highest level for two years and this does not bode well for interest rates remaining unaltered.  Although data suggests that interest is waning a little in property, prices are remaining strong as at the present moment, there is a shortage of houses  coming on to the market to be sold. There is a degree of uncertainty in the market, and many homeowners are choosing to sit tight and and wait and see how things develop in the coming months. Those worried that they will not have the opportunity of getting g a foot on the ladder are buying the property that is available, sometimes with little choice. We have seen a number of interest rates in recent months and  perhaps once stability is achieved, people will be tempted back in to the market. More property coming on to the market will help to produce " more competitive" house prices..   Although interest rates are rising, one interesting fact is that  the market is cooling a lot slower than it did in 2003 when the first of 5 rate interest rates were introduced and pretty much had an immediate effect. There are a number of factors that could be contributing, to this, including  the willingness to lend based on an outlook that remains fairly positive.   The buy to let mortgage market remains fairly strong although enquires are down but the desire to purchase property for rental purposes remains fairy strong and is having an effect on the market patricianly when property in short supply as it is.  Buy to let Landlords are of course not immune to rate increases and further rate rises may make landlords think again about the viability of property purchase as a means of planning for retirement.  At the present moment, the indicators are that house prices will continue to rise but at a more steady sedate pace       back to top   Copyright Assetsure Limited 2007