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House prices rise at fastest pace since 2010 – Halifax

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
06/08/2013

House prices have risen at the fastest rate since August 2010, according to new data from mortgage lender Halifax.

Prices in the three months to July 2013 were 4.6% higher than in the same period the year before.

House prices increased in July by 0.9% up from 3.7% in June, marking the sixth consecutive monthly rise.

The average house price in July was £169,624.

However, the increase in sales over the past year has not been matched by higher supply, with the stock of unsold properties on the market lower than it was a year ago.

Halifax said fewer houses in the market is probably contributing to the slight rise in house prices.

Martin Ellis, housing economist at Halifax, said: “Signs of improvement in the economy, underlined by the recent evidence of a rise in gross domestic product in quarter two and increases in employment, appear to have boosted consumer confidence. Greater confidence is likely to have underpinned the increase in housing demand.

“Official schemes, such as the Funding for Lending Scheme and the Help to Buy equity loan scheme, may also be raising demand. House prices are expected to continue to rise gradually through this year with only modest economic growth and still falling real earnings constraining housing demand and activity.”

The Royal Institute of Chartered Surveyors has reported an overall increase in the number of homeowners providing instructions to sell in the last few months, which could help to bring demand and supply into better balance.

 


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