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As a yardstick by which the economy is often measured, the instability experienced within the property market was one of the initial indications that the UK was entering a climate of recession. It therefore follows that the intensive measuring of property prices is being utilised as a gauge as to the economy’s delicate state and fluctuations in values are providing important information to experts and analysts attempting to determine when the UK is set to emerge from the recession currently gripping it.

Donna Green examines the latest news released by the UK banking giant Halifax that property prices have risen for the fourth consecutive month and explores the difficulties still faced by individuals who are still suffering the wrath of negative equity.

As previously reported, the Bank of England released figures at the end of October documenting a significant rise in the number of mortgage applications accepted. Combined with the low interest rates and competitive mortgage loans provided, the property market has experienced a dramatic rise in the demand for housing contrary to the opinions of analysts still predicting a worse lull within the recession.

The Halifax’s figures of a 1.2 per cent increase in the value of properties throughout the month of October provide a positive view of the recovery expected in the housing market. This can clearly be seen to reflect the positive trend that can be identified in property market news over the past few months.

Prior to the recession, which resulted in the devastating occurrence of negative equity and a near-eradication of all demand for remortgages, house prices had borne testimony to the fact that there was an increased emphasis upon luxury with the average house prices rising considerably year on year. The arguably regulatory effects of the recession allowed for a significant decrease in the prices that properties were being valued and sold at, reaching a low point throughout the months of February and March.

The news released by Halifax today details that, whilst property prices are still less than those of twelve months ago, there has been a stable 7.1 per cent increase since those bleak months six months ago, mostly as a result of a four month consecutive solid growth in prices. In addition to this figure, economists have found positive news in the figures released documenting a 2.9 per cent increase from prices of properties sold at the beginning of this year.

The figures released both by the Bank of England and the Halifax support the general consensus amongst analysts that demand within the mortgage market is steadily increasing, however it could be argued that until interest rates begin to increase in line with demand it is to the detriment of the refinancing and remortgaging markets.

About the Author:

This article was composed by Donna Green on behalf of Remortgage.com – a website supplying free information and guides on matters of remortgaging and refinancing your home. For further information on applying for a remortgage, please visit their website.