Rising house prices make home cover more worthwhile

7th July, 2005

Halifax has announced that house prices in June rose by 0.1 per cent, in spite of some experts predicting a slow down in the housing market.

Houses have maintained a relatively "static" price so far this year, however, suggesting that with house prices failing to fall, insurance cover for the home is more important than ever.

The mortgage lender described the "robust" nature of the economy and said that for the first time since 2001, the annual house price growth has dropped below the average annual earnings growth.

Furthermore, Halifax predicts that this trend will continue throughout the year.

With housing potentially more affordable following predicted income growth, and house prices rising, it could be worth investing in adequate home insurance to protect your asset for its whole value.

Halifax's forecast of 3.7 per cent house price growth comes close to the figure of Nationwide, which placed the growth in house prices in the twelve months to June 2005 at 4.1 per cent.

Halifax also highlighted the closing gap in average house prices in the North and South of England.

 

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