Rising House Prices

House prices rose for the seventh month running in August and are set to continue increasing “gradually” for the rest of the year, Halifax, the UK’s biggest mortgage lender, said today.

The Lloyds Banking Group offshoot said the annual rise in house prices of 5.4% was the highest rate since June 2010 and compares with just 1.1% in March this year.

Halifax housing economist Martin Ellis said: “Economic improvement and low interest rates, supported by official schemes such as Funding for Lending and Help to Buy, appear to have boosted housing demand in recent months. Nonetheless, relatively modest economic growth and below-inflation rises in earnings are likely to act as a brake on the market. Overall, house prices are expected to rise gradually over the remainder of the year.”

The average price of a house across the country is now £170,231.