UK's house prices rise 0.7 percent in August - Halifax

The report from Halifax and IHS Markit showed that the house prices in the UK rose 0.7 percent m-o-m to a record of GBP262,954 in August after an unrevised 0.4 percent m-o-m increase in July. That was below economist forecast of a 1.1 percent m-o-m advance.

On a three-month basis, the house prices increased 1.2 percent q-o-q in three months to August, decelerating from 2.4 percent q-o-q in three months to July.

In y-o-y terms, the house prices surged 7.1 percent in August after an unrevised 7.6 percent y-o-y jump in July. This was the smallest annual gain in house prices since March.

“Given the rapid gains seen over the past 12 months, August’s rise was relatively modest and the annual

rate of house price inflation continued to slow, hitting a five-month low of 7.1%,” noted Russell Galley, Managing Director, Halifax. “Much of the impact from the stamp duty holiday has now left the market, as highlighted by the drop in industry transaction numbers compared to a year ago. However, while such Government schemes have provided vital stimulus, there have also been other significant drivers of house price inflation.”