Residential property prices in the UK increased in March for the first time in 16 months but economists are warning that it is not yet a sign of recovery.
The monthly housing price index published by the Nationwide Building Society showed a 0.9% increase last month, the first since October 2007. The price of an average home increased above £150,000.
But economist said the figure should not be taken as a sign that the UK property market is one the road to recovery. Colin Ellis, economist at Daiwa Securities described the reading as likely to be a blip. ‘Even if these glimmers of hope continue to build, households still need access to affordable credit before a sustainable recovery can ensue,’ he explained.
‘It is still too soon to say that this will be the beginning of sustained house price rises and a reflection of a wholesale return of confidence to the market,’ she added.
Abstract from source: www.propertywire.co
