House prices rise £2,500 in September

House pricesAccording to the latest data released by the Land Registry, the housing prices rose almost £2,500 during the month of September in the UK.

The data showed that the house prices in England and Wales rose 1.5 per cent over the month indicating that the buyers are increasing coming forward to acquire homes in the UK. Amid concerns of a property bubble, the total property transactions are still a third lower than that in 2007 before the financial crisis and prices are higher by 3.4 per cent annually.

The limited supply of homes is pushing the prices of homes higher in the UK as buyers increase demand amid easy credit availability. The number of homes on the market fell by about 1.6 per cent while buyers registered with agents rose 2 per cent during the previous month. Experts have said that the London and the South East are at the risk of property bubble as British and foreign buyers look for homes and flats that not even built yet.

Chief economist of the Bank of England, Charlie Bean said that a healthy housing market is good the British economy and pointed out that the Financial Policy Committee will monitor Government's controversial Help to Buy mortgage scheme. The Bank of England will have the authority to contain the impact of the proposed `Help to Buy scheme' in the housing market in order to avoid a property bubble.