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Property Prices Continued to Rise in November

December 3rd, 2009

The latest Nationwide survey shows that house prices in the UK have risen for the seventh consecutive month.  The average value increased by 0.5% in November, surprising many observers as the pre-christmas period is usually sluggish for the property market. The latest figures reveal that the demand for housing is buoyant and considerably more resilient to macro-economic conditions than many experts intially thought.

Having been at forefront of the property industry, this reinforces Alpha Property Investment’s belief that movements in the housing market tend to be  the harbingers of the wider economic environment. Although the UK economy is still in a worrying state (notably in terms of unemployment , GDP growth, and a ballooning national debt),  the green shoots in the property market are indicative of a modest, yet sustained economic recovery.  Credit flows seem to be up-and-running again, thereby enabling mortgage lenders to ease their criteria and provide house-buyers with the financing facilities indispensable to maintain a healthy, wide-based demand in the property market. This could well be a self-reinforcing trend as lower interest loans helps consumers free up funds they can now spend on other goods and services, thereby spurring wider economic growth.

UK house prices 12-09

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