For the second month in a row, domestic house prices in the UK continued to rise in August, Halifax has revealed in a report from BBC News.
The value of the average UK house is now ?160,973, after property prices increased by 0.8 per cent during the last month, compared to prices seen in July. This average property price is marginally higher than it was at the end of 2008.
The report by Halifax also revealed that despite the rise in property prices, the value of houses were 10.1 per cent lower in the three months to August than they were during the same period in 2008.
Nevertheless, throughout 2009, house values had risen during four of the eight months. The survey revealed this was due to fewer houses on the market and more buyers, driving demand and increasing house prices.
Martin Ellis, a housing economist speaking for Halifax, said: ?Demand for housing has increased since the start of the year due to better affordability and low interest rates.?
Stability is undoubtedly returning to the UK property market, along with homeowners? confidence. However, with high unemployment levels and stringent mortgage criteria, house prices may continue to fluctuate slightly over the coming months.
Howard Archer, economist at IHS Global Insight commented: ?While it is now looking very likely that April marked the trough in house prices on the Halifax measure, we suspect that they will be prone to relapses over the coming months and we very much doubt that a sharp, sustainable upward trend in house prices is in the process of developing.?
