House Prices on the Increase

According to the Halifax bank, house prices are finally starting to increase, as July saw a rise of 1.1% which is the highest rise in prices in the past three months.

This comes as good news, and the current growth in prices is the first uptrend noticed since October 2007.  At the same time, house builders are reporting increased growth and finally starting to see signs of sales increases and a turnaround in the decline that has affected the British housing market so badly.

With the situation looking set more likely to improve, there are more and more signs coming from banks and building societies which are reinforcing the fact that the worst of the financial crisis is now behind us.

However, at the same time as this positive news fills the market with hope, lenders and banks are being highly cautious in their approach, refusing to speculate on what will happen in even three months time.

The precarious position the British economy has been in  predicated this cautious approach, after a period of months in which the government done very little to reassure the public.

The revival of the housing market looks set to reassure the public, however analysts have warned that it may bring about a selling frenzy which will in turn spark another downturn in prices.

Many analysts believe that the record low levels of interest rates have been responsible for saving many homeowners from repossession, and as a result many homeowners may take the first opportunity to sell their homes in order to sure up their finances for the future and secure what little equity they have left.

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