UK house prices rise 0.3% in August

LONDON, Sept 5:  UK house prices rose 0.3% in August, a third consecutive monthly increase that leaves them 2.2% higher than a year earlier, figures published by mortgage lender Halifax showed on Friday.

Economists polled by Reuters had forecast prices would rise 0.1% on the month and be 2% higher than the year before.

UK house prices have been rising more slowly than consumer price inflation in recent months, after a surge in the first quarter of this year when buyers sought to take advantage of the final months of a tax break on property purchases.

“While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride,” said Amanda Bryden, Head of Mortgages at Halifax.

“Supported by improving affordability and resilient demand, we expect to see a slow but steady climb in property prices through the rest of this year.”

August data from rival mortgage lender Nationwide on Monday showed that prices unexpectedly dropped 0.1%, causing annual house price inflation to slow to 2.1% from 2.4%.

Property website Rightmove – which advertises the vast majority of British homes for sale – said there had been a rise in sales in July, as sellers dropped their initial asking prices by more than usual due to a glut of property on offer.

Halifax’s Bryden said the average property price had reached a new record high of 299,331 pounds ($404,366.25).
Figures from the Bank of England showed mortgage approvals picked up to a six-month high in July.

However, industry body RICS said some buyers had appeared cautious that property taxes on more expensive homes would rise in finance minister Rachel Reeves’ annual budget, which will take place on November 26.

Separate data from Rightmove, released earlier on Friday, showed that average rents for newly advertised tenancies were 3% higher than a year earlier at a record 1,577 pounds a month.