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House prices in the UK increase by 2.7% for August

House prices have risen by nearly 3% over the month of August according to new figures from Halifax.

House Prices Increase August 2015

House prices have risen by nearly 3% over the month of August according to new figures from Halifax.

The bank’s new figures have come as a surprise to the market, marking the highest month-on-month increase since May of last year, an increase that was far higher than expected.

The research also found that August’s performance had added to the 3% rise in the average house price over the past three months, bringing the average house price up to £204,674. The rise also means that the annual increase in the average house price has reached 9%.

Commenting on the findings, Halifax’s housing economist, Martin Ellis said: “The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices.

“At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand.”

Whilst these figures indicate a sharp rise in the value of UK residential properties, figures released earlier this month by building society Nationwide tell a very different story.

According the lender, house prices last month only rose by 0.3% and described the annual growth in property values to August as the weakest for two years.
However, it is the Halifax figures that appear to have had the greater impact on the market with a number of prominent economists readjusting their projections for 2015.

Both IHS Global Insight and the Royal Institute of Chartered Surveyors (RICS) have increased their initial estimates for the year to 7% and 6% respectively, with RICS doubling their previous projection of 3% growth.

The chief economist for RICS, Simon Rubinsohn, said: “House price inflation has now quickened in each of the last seven months following a sustained period of easing towards the latter half of 2014. And there is good reason for this trend to be sustained into 2016.”

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