February mortgage/house prices rose by 1.8%

The house prices in the United Kingdom are still rising strongly despite some experts saying there needs to be a market correction soon.

According to the Halifax in its monthly mortgage and house survey, the Halifax reported that prices rose by 1.8% in February 2007. This keeps the annual rate of house price inflation at about 10%.

Whilst figures differ depending on the provider the Halifax estimate (rather exactly!) that the average house price is now £192,233 - making a mortgage for the 'average' couple/family a difficult monthly expense to meet.

In the three months to the end of February 2007 the United Kingdom house prices rose by 2.3%. This does represent a substantial increase however is only half the level seen during the November 2006 - January 2007 period.

February's figure is the strongest monthly rise recorded by some of the major mortgage companies (e.g Halifax, Mortgage Express, Northern Rock, Barclays and Abbey) in several months.

The Chief economist for the Halifax, Martin Ellis said "A shortage of both new and second hand properties available for sale has continued to push house prices up so far in 2007, particularly in London,"

Nevertheless, Mr Ellis repeated his long-held assertion that house price inflation will slow during June - December 2007.

However according to an economist at Merrill Lynch, Nick Bate, the market is still showing signs of vigour.

"All in all, the housing market has perhaps weakened a touch from the strength shown in late 2006, but not by much, and overall it remains buoyant," Mr Bate stated.