February sees strong rise in house prices

House prices in the UK are rising strongly, according to the latest figures released by the Halifax, the country’s biggest mortgage lender.

In February, house prices rose by 1.8%. This means annual house price inflation remains at 9.9% and the average house price is now £192,233.

With the Bank of England announcing that interest rates are to remain unchanged, the housing market should continue to see strong growth.

While February’s house price rise is the strongest monthly figure recorded by the Halifax since last October, their chief economist repeated his belief that house price inflation will slow in the second half of 2007.

However, Nick Bate, economist at investment bank Merrill Lynch said: “The housing market has perhaps weakened a touch from the strength shown in 2006, but not by much. Overall it remains buoyant.”

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