Halifax have released a press report that shows house prices are rising at their fastest rate for three years. The narrative for this is that the funding for lending scheme has increased the availability of mortgages and so is driving activity in the market, but a weak economy is suppressing demand.
The actual rate at which prices are increasing is quite modest compared to the rate of increase from the mid 1990s to 2007.
It may be that part of this is a statistical fluke. This is higher than Nationwide who reported an increase of 1.9% over the same period. It will take a few more quarter to determine if how prices have moved from being essentially flat to one in which they are starting to increase(albeit at a historically very low rate).
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