September 28, 2009

British home prices signal turnaround

Home prices in Britain rose 0.2 percent in September -- the second consecutive monthly increase, Hometrack said.

The annual rate of decline slowed to 5.6 percent, said Hometrack, a residential property search group. In August, declines were running an annual rate of 6.7 percent.

The market was still wobbly, Hometrack's director of research Richard Donnell said. A fundamental imbalance still exists between supply and demand and question marks remain as to how long this situation can last and how resilient the market will be to changes in both levels of demand and sentiment.

But the building society Nationwide said prices home prices are rising faster then they have in two and a half years.

Low mortgage rates prompted by the Bank Of England's historically low 0.5 percent lending rate has made houses more affordable, Nationwide said.