UK House Prices Rise faster than other countries

House Prices in the UK in 2006 rose faster than most other industrialised countries.

UK prices rose by about 10% last year. This was helped by low real interest rates and a strong economoy. In Europe house prices rose more slowly. e.g 7% rise in France, 4% in Italy and no growth in Germany.

However house prices in Eastern Europe grew faster, beginning to catch up with their western counterparts. Poland for example saw house prices rise by 30%

Rising house prices have been a global phenomena with house price inflation often far outstripping retail inflation and the performance of the housing market. However it is not all just rising prices. In the US house prices have started to fall in some states, revealing fears that house prices are overvalued and have been a victim of a “bubble”

The report’s author Professor Michael Ball said that in the UK a strong economy and underlying economic forces prevented the market from falling he said.

“Fears of a considerable house price slowdown in what are considered as over-heated markets of the UK, Spain and Ireland, once again proved to be quite off the mark,” he said.”

See: Guide to UK housing Market

See bbc