House price growth second highest in Europe

Figures from the Halifax and European Central Bank show that the UK is the second strongest performer in the Eurozone, when it comes to house price growth.

The Eurozone comprises European Union member states that have adopted the Euro.

According to the data, house prices for the region have increased 40% on average since 2002.

However, UK house prices have increased 90% in the same five year period, a rise which comes only behind Spain, where prices have increased 100%.

The Halifax survey has identified eight Northern Irish towns as the fastest growing in terms of UK house prices.

Whilst house prices in the UK have risen more rapidly than the country’s Eurozone neighbours, growth over the past two years has been behind that of Belgium and France.

The UK property market is now entering a new era following recent interest rate rises and the crisis in the US sub-prime mortgage market.

Nationwide, the UK’s biggest building society, is one of many lending institutions to have issued warnings that the consequences of the events in the US may yet have a negative impact on UK house prices.

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