House prices rise in February

A new survey by Hometrack shows that house prices in the UK were up by 0.7 percent in February. It was the biggest monthly increase since May 2004. The number of properties registered with real estate agents was up by 14 percent, while the number of interested buyers was up by 23 percent. This rise of demand over supply sent prices higher, especially in southern England.

Prices were up by 1.3 percent in London and by 0.9 percent in the South East, with the average time it took to sell a house once it was listed at less than two and one half weeks. Prices rose at a more moderate rate of 0.1 percent in Yorkshire, the East Midlands, and in Wales. It took about seven weeks in those areas for a newly listed house to sell.

Richard, Donnell, research director for Hometrack, said that unless more properties come on the market, prices will continue to rise. In another, separate, survey by property finder.com, immigration and migration within the UK were a major factor in rising house prices in 2006. That report found that 11 percent of the British population moves house each year. In addition, 565,000 immigrants set up housekeeping in the UK in 2006.

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