UK House Prices Rise 0.3% in August, Says Halifax
British house prices increased by 0.3% in August, marking the third consecutive monthly gain. Prices are now 2.2% higher than a year earlier, according to data published by mortgage lender Halifax on Friday.
Economists surveyed by Reuters had expected a smaller monthly rise of 0.1% and annual growth of 2%.
Property Prices Outpace Forecasts
Halifax reported that average property prices reached a new record high of £299,331 ($404,366). While growth has slowed compared to earlier this year, improving affordability and resilient demand continue to support the housing market.
Amanda Bryden, Head of Mortgages at Halifax, said:
“While the wider economic picture remains uncertain, the housing market has shown resilience. We expect a slow but steady climb in property prices through the rest of this year.”
Slower Growth Compared to Inflation
In recent months, house price growth has been weaker than consumer price inflation. Earlier in the year, demand was boosted by buyers rushing to complete purchases before the expiry of a property tax break.
Market Trends from Nationwide, Rightmove, and RICS
Rival lender Nationwide reported that house prices unexpectedly fell 0.1% in August, slowing annual growth to 2.1% from 2.4%. Property website Rightmove noted higher sales in July, as sellers lowered asking prices due to increased supply.
The Bank of England also said mortgage approvals hit a six-month high in July. However, the Royal Institution of Chartered Surveyors (RICS) warned some buyers remain cautious ahead of potential property tax changes in Finance Minister Rachel Reeves’ budget on November 26.
Rental Market Also Hits New High
Separate data from Rightmove showed that average rents for new tenancies rose 3% year-on-year, reaching a record £1,577 per month.
