U.K. House Prices Rise Most in Two Years

U.K. house prices posted the biggest gains in two years in September as confidence in the market improved, Hometrack Ltd. said.

The average cost of a home in England and Wales rose 0.2% from August to $248,000, the London property-research company said Monday. The increase, the biggest since June 2007, left house prices 5.6% lower than a year earlier, the smallest annual decline in a year.

The report adds to evidence that the housing market may be starting to level off after the credit squeeze ended a decade-long boom. There still is a risk that the recovery from recession will falter as unemployment continues to rise, Bank of England policymaker Kate Barker said last week.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER