UK house prices jump as market strength persists
British house prices rose sharply last month in a further sign of strong momentum in the market even after the partial withdrawal of tax breaks on property purchases, a survey from mortgage lender Halifax showed on Tuesday.
House prices rose by 0.7 per cent in August, the biggest month-on-month rise for three months and following a 0.4 per cent rise in July, Halifax said.
In annual terms, house price growth cooled to 7.1 per cent from 7.6 per cent in July, the weakest reading for five months.
The number of property purchases slumped in July when a year-long exemption from stamp duty for the first 500,000 pounds ($687,550) of a house purchase ended in England and Northern Ireland.
But other housing market indicators suggest that the gradual expiration of tax breaks has not resulted in a marked slowdown. "We believe structural factors have driven record levels of buyer activity such as the demand for more space amidst an increased work from home environment," said Russell Galley, Managing Director of Halifax.
"These trends are expected to persist and the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax relief ends later this month."
Rival mortgage lender Nationwide last week said its measure of UK house prices rebounded surprisingly strongly in August to show their second largest monthly increase in 15 years after falling in July
Source: www.thedailystar.net
