House prices in the United Kingdom rose during the three months to August, according to the latest house price index from the Halifax.
Data from the report shows that average property prices in Britain grew by 9% annually, lower than the 9.6% reported in June, but better than July’s 7.8%.[1]
Rises
During the last three months, prices were up by 3% on the preceding three-month period. The quarterly rate of change rose from the 2.5% in July, but was below the 3.3% in June.[1]
Month-on-month, house prices increased by 2.7% between July and August, representing the largest monthly rise since May 2014. According to the Index, monthly movements can be volatile and quarterly figures are the most reliable indicator of underlying trends.
Home sales were down by 4% between June and July, but remained above the 100,000 mark for the second consecutive month. More encouragingly, sales in the three months to July were 3% greater than they were in the previous three months.[1]
Strong
‘The underlying pace of house price growth is strong,’ believes Martin Ellis, housing economist at the Halifax. ‘The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices. At he same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand. Strengthening demand and highly constrained supply are likely to mean that house price growth continues to be robust in the short-term.’[1]
[1] http://www.propertyreporter.co.uk/hero/house-price-growth-rises-to-9-in-august.html