Home prices rise at the fastest pace since November says Halifax

Jump: housing prices rose 3.3 percent in July, more than double the growth rate in June

Housing prices rallied in July, as growth accelerated at the fastest pace in eight months, but sales activity in the market remains stable, according to new figures.

The average price of a house in the UK increased by 3.3 percent to a new record of £ 230,280 in the year through July, according to Britain's largest mortgage lender, Halifax.

A rebound in volatile monthly figures added £ 3,253, or 1.4 percent, to the average household cost and saw annual inflation in the home price that accelerated from the 1.8 percent seen in June.

Jump: housing prices rose 3.3 percent in July, more than double the growth rate in June

Jump: housing prices rose 3.3 percent in July, more than double the growth rate in June

House price inflation has reached its highest level since last November, despite mediocre sales reports and a buyer's market in many areas.

Halifax CEO Russell Galley said that while quarterly and annual rates of housing price growth had improved, housing activity remained "soft."

"Despite the modest recent improvement in mortgage approvals, the latest survey data for new buyer inquiries and agreed sales suggest that approvals will remain virtually flat until the end of the year," he added.

He also said that they did not expect the recent rise in interest rates to 0.75% to have a "significant" impact on the affordability of the mortgage or the volume of transactions.

House sales in the United Kingdom fell 3 percent in June, with the three-month figure to June unchanged compared to the previous quarter, Halifax said.

Brian Murphy, Director of Loans of the Office of Mortgage Counseling, said: "Despite the increase in the Bank rate announced last week by the Bank of England, many lenders have not changed their rates since they had calculated the increase previously, which is good news for buyers and those who retire equally.

"As with the growth of housing prices, an increase in the interest rate is actually the sign of a solid economy, therefore, along with today's news, one might suggest that while the market is not It shoots at full speed, it is working very well during the summer months. & # 39;

Both the annual and quarterly growth rate was the highest since November of last year

The Halifax data follows Nationwide figures from last week, which showed a more modest annual increase of 2.5% and a monthly increase of 0.6%.

Mike Scott, chief property analyst at real estate agent Yopa, said that the increase in prices does not reflect an increase in market activity, with the numbers of the buyer and the seller being moderate.

"The economic fundamentals that underpin the housing market remain strong, with high employment rates, average wages rising faster than inflation and low interest rates." The recent increase in the base rate of the Bank of England already had a Great price on mortgage interest rates, and it is unlikely to significantly affect the market. "

Jeremy Leaf, a North London real estate agent and former RICS residential president, also said that the price rebound in July was mainly due to the housing shortage in the market and low mortgage interest rates.

"It's almost as if the north / south division works in reverse with more activity outside than inside the capital," he added.

Soft activity & # 39 ;: Home sales in the UK have been falling

Soft activity & # 39 ;: Home sales in the UK have been falling

Soft activity & # 39 ;: Home sales in the UK have been falling

Howard Archer, principal economic adviser to the EY ITEM Club, was cautious and said: "We continue to doubt that the housing market is undergoing a sustainable gear change.

"The activity of the housing market is still relatively lackluster and we expect it to continue that way, given that the pressure exerted on consumer purchasing power is only gradually alleviated, consumer confidence is relatively fragile and considerable caution persists to get involved in transactions important

"Potential home buyers may also be concerned that they are likely to face further interest rate hikes in the medium term after the August rise."

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