Published: Thu, August 09, 2018
Business | By Eloise Houston

Annual house price growth rebounds to 3.3% in July: Halifax

Annual house price growth rebounds to 3.3% in July: Halifax

Halifax also pointed to a "robust" labour market, notably the recent increases in people in full-time employment.

The three months to July also shows an increase of 3.3% beating estimates.

But Halifax said that transaction activity "remains soft" and that it expected the number of mortgage approvals to be broadly flat during 2018.

Nationwide said annual house price growth accelerated to 2.5% in July, with the cost of the average home rising to £217,010.

The rise comes just days after the Bank of England raised interest rates from 0.5 to 0.75 per cent.

"For instance, Rightmove's measure of online asking prices rose by just 1.4% year-over-year in July, while a net balance of just +3 surveyors reported to RICS that house prices had risen over the past three months in June", Tombs said.

Brian Murphy, Head of Lending for Mortgage Advice Bureau, said: 'Despite the rise in Bank Rate announced last week by the Bank of England, many lenders haven't changed their rates as they had priced in for the increase previously, which is good news for buyers and those remortgaging alike.

Mike Scott, chief property analyst at estate agent Yopa, said the increase in prices does not reflect an increase in market activity, with both buyer and seller numbers remaining subdued.

'It is nearly as if the north/south divide is working in reverse with more activity outside rather than inside the capital, ' he added. Viewings are up but it is hard to obtain commitment as political and economic uncertainty remain.

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.

The prices are based on the local market.

In fact, this could be described as house price growth utopia as any news of an overly excessive increase is criticised as bad for home buyers, while a fall is met with toxicity by those that already own a home. "Prices are up annually and while a slightly tired market hasn't narrowed the unaffordability gap over the past year or two, it has at least stalled it from widening somewhat" he says.

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