UK house price rise during August to eight-month high

Here’s why…

House prices in the UK rose at their fast past this year last month suggesting the housing market has begun regaining ground following the aftermath of Brexit vote.

Mortgage lender Halifax released their house price index yesterday which revealed house prices increased 1.1 per cent from July, the biggest monthly rise since December 2016.

Russell Galley, Managing Director, Halifax Community Bank, said: “Recent figures for mortgage approvals suggest some buoyancy may be returning, possibly on the back of strong recent employment growth, with the unemployment rate falling to a 42 year low. 

‘However, wage growth is still lagging increases in consumer prices, which is likely to add pressure on household finances and increase affordability challenges for some buyers,” he added.

Annual house price growth also increased to 2.6 per cent up from 2.1 per cent in July, although this is down on the peak of 10 per cent in March when transactions grew sharply ahead of the introduction of new higher stamp duty tax rates for buy to let and second homes that came into effect in April.

Galley added that: “House prices should continue to be supported by low mortgage rates and a continuing shortage of properties for sale over the coming months.”

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