UK house prices rise
British house prices rose 5.4 per cent in the three months to August from a year earlier, the biggest annual rise since June 2010, mortgage lender Halifax said this morning.
But there were some signs that the pace of increase was slowing with house prices up 0.4 per cent in August alone. This was less than economists had forecast and slower than July’s 0.9 per cent rise, which was aided by an improving economy and government schemes to aid house purchases.
“Relatively modest economic growth and below inflation rises in earnings are likely to act as a brake on the market. Overall, house prices are expected to rise gradually over the remainder of the year,” said Halifax housing economist Martin Ellis.