UK July Halifax house price index +1.4% vs +0.2% m/m expected

Marco Green
August 7, 2018

A surprise spike in United Kingdom house prices in July has increased the annual rate of property inflation to 3.3%, pushing the cost of buying a home to a record high.

House prices surged 1.4 percent during the month of July after a 0.9 percent rise in June, Halifax said, topping all forecasts in a Reuters poll that pointed to a 0.2 percent increase.

The average house price in Britain is now £230,280, the highest on record.

Despite the upbeat figures, however, Russell Galley, managing director at Halifax, said housing activity remained "soft". Its figure for annual house price inflation is 2.5%.

He also said they did not expect the recent hike in interest rates to 0.75 per cent to have a "significant" impact on either mortgage affordability or transaction volumes.

The increase pushed house price inflation back above wage growth, which is now at about 2.5% a year, and comes just days after the Bank of England raised interest rates.

Research published by Nationwide last week also showed house prices rising beyond expectations in July. Month-on-month growth was 1.4 per cent, compared to 1.3 per cent over the quarter.

Other reports by Click Lancashire

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