House prices in Britain continued to rise at a substantial rate during February, according to the latest survey from the Halifax.
Data from the report shows that property prices were up by 9.7% in the last month, in comparison to the same time one year ago. However, prices were slightly down on January’s figures.
Growth
The Halifax said that house prices in the three months to the end of February were up by 3%, in comparison to the last quarter. It also revealed the average price of a property in Britain has now risen to £209,495. However, property values were actually down by 1.4% in comparison to January.
Martin Ellis, housing economist at the Halifax, said, ‘prices continue to rise at a robust pace driven by significant imbalance between supply and demand. Whilst this position is likely to continue over the coming months, there are some tentative signs that the supply situation may be beginning to improve.’[1]
‘Further ahead, increasing affordability issues, as house price increases continue to exceed wage growth, are likely to curb housing demand and cause price growth to ease,’ Ellis added.[1]
House price growth stays strong in February
Comparison
These findings from the Halifax marry up with the results of a separate report by the Nationwide, which also indicates a steady rate of growth in UK house prices.
In addition, the building society said that the number of mortgage approvals rose in January, to hit almost 75,000.
Nationwide’s chief economist, Robert Gardner, noted, ‘much of the increase is likely to be related to the impending increase in stamp duty on second homes, which is due to take effect in April.’[1]
‘This is likely to have brought forward a significant number of purchases, which in turn will probably result in a fall back in approvals during the spring and summer,’ he added.[1]
[1] http://www.bbc.co.uk/news/business-35714443