LONDON (Reuters) – British home costs rose within the three months to August at their quickest annual price since November final yr, figures from main mortgage lender Halifax confirmed on Friday, bolstered by a gradual pick-up in wages and restricted provide.
FILE PHOTO: A pair view properties on the market in an property brokers window in London, Britain August 22, 2016. REUTERS/Peter Nicholls/File Photo
Halifax stated home costs within the interval had been three.7 % larger than a yr earlier, up from a three.three % development price within the three months to July however a barely smaller improve than the typical forecast in a Reuters ballot.
The figures distinction with information from rival mortgage lender Nationwide final week, which reported costs had been up simply 2 % on the yr in August, the joint-smallest improve in 5 years.
Britain’s housing market started slowing within the run-up to June 2016’s Brexit vote. The greatest slowdown has been in London, as a result of decreased urge for food from overseas buyers and issues concerning the monetary providers trade, with much less of an impression in different components of the United Kingdom.
A “stable, yet constrained” provide of recent houses was supporting costs, as was a gradual pick-up in wage development, Halifax managing director Russell Galley stated.
Looking on the month of August alone, home costs rose zero.1 % from July, after they jumped by 1.2 %.
Howard Archer, an economist at consultancy EY ITEM Club, stated he didn’t see an upturn on the way in which for British home costs and anticipated annual home value development of two.5 % this yr and subsequent.
“Consumer confidence is fragile and appreciable caution persists over engaging in major transactions. Potential house buyers may also be concerned that they are likely to face further interest rate hikes over the medium term following August’s hike,” he stated.
The Bank of England raised rates of interest to zero.75 % in August in solely its second improve since earlier than the global monetary disaster. BoE Governor Mark Carney stated market expectations of 1 price rise per yr over the following few years could be rule of thumb for households.
Reporting by David Milliken; Editing by Catherine Evans