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Nationwide: House Prices Continue to Rise in August

Property prices in the UK have risen by a further 0.6% in August, according to the latest house price index from Nationwide.

Nationwide House Prices Rise in August 2016

Property prices in the UK have risen by a further 0.6% in August, according to the latest house price index from Nationwide.

The figures, compiled on a monthly basis by the mortgage lender, demonstrate that the average house price now stands at £206,145 – another record figure for the index – and rising by £430 on July’s figures.


According to the index, house prices in the UK have risen by 5.6% since August last year, where the average property price stood at £195,279. The building society also revealed that there had been growth of 1.1% in the three months to August.


Nationwide have indicated that the growth in the market is being driven by the continuing undersupply of housing stock within the UK.


Commenting on the latest results from the index, chief economist at Nationwide, Robert Gardner said:


‘The pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months. New buyer enquiries have softened as a result of the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum. The number of mortgages approved for house purchase fell to an eighteen-month low in July.


‘However, the decline in demand appears to have been matched by weakness on the supply side of the market. Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to thirty-year lows. This helps to explain why the pace of house price growth has remained broadly stable.’


Earlier this month, Halifax revealed in their own house price index that the average value of homes in the UK had fallen by 1.0% in July. However, the quarterly figures indicate growth of 1.6%, with the lender stressing that the quarterly numbers are a more reliable indicator of market trends than the monthly figures.

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