THE north is leading a revival of the stalled house price boom with free-spending Britons who have blitzed the High Street now turning their attention to investing in property.
A surge in British house prices in the three months to December, marks the first rise since July, according to the Royal Institute of Chartered Surveyors.
The downward trend in the housing, market which started in the summer, suffered a further setback following the September 11 atrocities in the United States, with prices falling in the affluent London and south-east.
But these have now stabilised, says RICS, which earlier this week forecast a six per cent rise in house prices. Northern England is said to be reporting the biggest increases, led by Yorkshire and Humberside.
The picture in the north-west is also said to be ''very encouraging'' with Manchester city centre, especially, booming.
And it points to recent cuts in interest rates as having helped attract buyers back into the market.
Soaring prices
The latest figures support findings by the Halifax that house prices soared 2.9 per cent in December, marking their strongest monthly rise for over two years. They are further evidence of robust consumer confidence in Britain, where people are continuing to spend, despite rising unemployment and a global economic slowdown.
In a country where around three quarters of families own their own homes, house prices are a more important wealth factor than share valuations, and play a significant role in influencing consumer spending habits, say economists.
''The growth in new enquiries reflects general optimism from buyers as the economy continues to hold firm, interest rates remain low and the stock markets recover from the autumn downturn,'' said RICS in a statement.
But it did strike one note of caution, saying it was not entirely clear if the market's rebound was the sign of a more extended pick up in fortunes.
''To what extent the recovery is a bounce back from earlier weakness, or the beginning of a sustained recovery, is hard to judge at present,'' it said.
The average price of a house in the north-west is put at £67,240 and compared with a London average of around £179,560.
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