Recovery in UK house prices continues to gain momentum

THE rebound in UK house prices gathered pace in September according to the Land Registry&rsquo;s latest monthly report, which revealed that house prices rose 0.9 per cent on August cutting the annual decline to just 5.6 per cent.<br /><br />The Land Registry&rsquo;s figures are the latest evidence suggesting that UK house prices are firmly on an upward track with mortgage lenders Nationwide and Halifax both seeing monthly rises in September.<br /><br />As expected, London is leading the way towards positive territory with house prices in the capital surging 1.3 per cent last month, while Wales experienced a monthly decline of 2.6 per cent.<br /><br />Like the other housing market surveys, it appears that the Land Registry house prices are being sustained by a lack of stock. Between April and July 2009 transaction volumes averaged 48,109 transactions per month, a 19 per cent drop on September 2008. <br /><br />With credit availability still poor and unemployment continuing to rise, analysts have warned that there is a chance that house prices could relapse further, even if all the surveys are currently pointing towards further rises.