September Price Rises Confirmed

Price growth remained firm in September, according to the latest data from the Department for Community and Local Government (DCLG) report. The department found that annual inflation rose to 8%, up from 7.4% in August, the fastest rate of annual house price inflation in 18 months.

And these fast rate rises are not just confined to London and the South East; house prices shot up all over the country, the data says. However, a slowdown is anticipated as November’s interest rate rise, plus another expected in the New Year, temper the market.

Property economist Kelvin Davidson commented: ‘With affordability already stretched, we expect housing market activity levels and price pressures to cool in early 2007.’