Dec. 9 (Bloomberg) -- U.K. house prices were unchanged in November as an increase in transactions helped support values, Acadametrics Ltd. and LSL Property Services Plc said.
The average price of a home in England and Wales was 220,043 pounds ($343,800) last month, the groups estimated in an e-mailed report in London today. The number of transactions rose 4.5 percent on the month. From a year earlier, values were down 0.7 percent.
The Bank of England kept its target for bond purchases unchanged yesterday and its benchmark interest rate at a record low of 0.5 percent as European officials prepared to meet on a strategy for the region’s debt crisis. Acadametrics said the increase in transactions may be partly due to homebuyers with “substantial” deposits taking advantage of low interest rates to buy property.
“The resilience of property prices indicates that mortgage lenders and property buyers have not so far been spooked by the gloomy news emerging from the euro zone,” David Newnes, director of LSL Property Services, said in the statement.
On the month, five of 10 regions tracked showed increases, led by a 0.6 percent gain in London. There was no change in prices in the South East, and the rest declined.
The number of transactions in November was estimated at 60,600, which compares with 49,383 six months ago. Acadametrics said the increase has been fueled by the buy-to-let markets and it remains to be seen if the euro-area debt crisis and the threat of job losses “will have a dampening effect on this pattern of growth.”
European leaders started talks in Brussels last night and meetings will continue today amid rising concern on the future of the common currency and economic union. Bank of England Governor Mervyn King said last week the debt turmoil was starting to look like a systemic crisis.
The Bank of England held its so-called quantitative-easing target at 275 billion pounds yesterday and said it will keep the program “under review.” The European Central Bank lowered its key rate to 1 percent, matching a record low, and offered banks unlimited cash for three years to boost lending.
Acadametrics and LSL combine initial transaction data from the U.K. Land Registry and results from other price measures for their index of values.
--Editors: Fergal O’Brien, Leon Mangasarian
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