House prices rise 1.3% in August: UK HPI

Average house prices in the UK increased by 1.3% between July and August and by 8.4% in the year to August 2016, according to the latest UK HPI.

Related topics:  Property
Rozi Jones
18th October 2016
house money

The average UK house price was £219,000 in August 2016 - £17,000 higher than in August 2015 and £3,000 higher than last month.

The East of England is the region which showed the highest annual growth, with prices increasing by 13.3% in the year to August 2016. Growth in the South East was second highest at 12.2%, followed by London at 12.1%. The lowest annual growth was in the North East, where prices increased by 3.0% over the year.

The Index stated that "housing market indicators for August suggested a period of relative stability during the month".

In terms of housing demand, the volume of lending approvals for house purchases fell slightly in August compared to July, remaining at levels seen in early 2015. Home sales in the UK stayed stable between July and August but remain below levels seen in 2014, 2015 and before the stamp duty changes in early 2016.

Matt Andrews, Managing Director of Bluestone Mortgages, commented: “The steady rise in annual house prices marches on, forcing high-street banks to lend larger and larger amounts to those hoping to buy a home. Whilst these large loans may help borrowers with high earnings and large deposits, a recent Bank of England survey revealed banks have tightened their lending criteria for many others. As a result, borrowers with complex incomes, or an adverse credit history, due to experiencing a genuine bump in the road, risk being forced out of the market."

Katherine Binns of HomeOwners Alliance added: "The latest house price data released by Land Registry shows little change in house price growth in August. Since the referendum result, both house sales and house price growth have eased.  However, low mortgage rates and a shortage of homes available for sale should sustain house prices.

"As the economy and employment have held up following the Brexit vote, it will be interesting to see whether confidence returns and begins to unfold in autumn housing market activity as buyers take advantage of attractive mortgage rates."

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