"Early indicators suggest that property market activity in 2012 is on course to be more robust than in 2011"
- Rightmove Plc
U.K. house prices rose 1.6 per cent to 236,939 pounds in March, announced the Rightmove Plc, owner of the U.K.'s largest residential property Web site on Monday.
"Early indicators suggest that property market activity in 2012 is on course to be more robust than in 2011," Rightmove said.
David Miles, Bank of England policy maker, said U.K. house prices are likely to rise in the long term.
"The trend of rising real incomes and the likelihood of rising population density mean we should anticipate a rising trajectory for real house prices over the longer term," Miles said in a paper published by the Bank of England in London today.
"This is particularly likely in a country like the U.K. where population density looks set to rise relatively fast. The model also suggests that the upwards trajectory in house values may ultimately become steeper than the rise in real incomes."
© Dukascopy Bank