It was business as usual in August with the Nationwide reporting a 0.8% increase for the month; annual house prices growth up from 10.6% to 11%.
The Nationwide’s Chief Economist commented: “UK house prices edged up by 0.8% in August, marking the sixteenth successive monthly price rise. As a result, the annual pace of house price growth is up to 11% from 10.6% in July.
While this is still below the 11.8% recorded in June, house price growth continues to outpace earnings by a wide margin, with average wage growth running at less than 1% in recent months.
Nevertheless, at a national level housing affordability does not appear stretched by historic standards, in part due to the low level of mortgage rates.”
An increase in house prices in August is supported by the Halifax House Price Index too although they report a 1% increase, up 3% for the quarter, with an annual change of +9.7%.
Commenting, Martin Ellis, Housing Economist, said: “House prices in the three months to August were 3.0% higher than in the three months to May. Annually, prices were 9.7% higher in the three months to August than in the same three months last year. Both the quarterly and annual increases were lower than in July.
He continued “There are some signs of an improvement in housing supply, both in terms of more second-hand properties coming onto the market and increased numbers of new homes. These trends, if sustained, should help to improve the balance between supply and demand, contributing to an easing in the pace of house price growth.
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