DCLG: House prices rise 0.7% in August
Official data from the Department for Communities and Local Government (DCLG) today revealed UK house prices crept up by 0.7% in August compared with July, with the average UK home costing £213,116.
On an annual basis, house prices were up 8.3% in August, slightly down from the 8.4% reported in July.
Despite the monthly rise, growth has slowed since April, the DCLG noted.
Commenting on the data, Howard Archer, chief economist at the IHS Global Insight, said he expects values to gradually ease between now and the end of the year, and house prices will lose around 10% in value in 2011.
The figures come on the same day as the Royal Institution of Chartered Surveyors (Rics) said a high level of properties on the market continues to outnumber buyer demand, and this will impact negatively on house prices.
This echoes many reports, which all suggest house prices are heading for a double dip.
House prices slumped by around one fifth between autumn 2007 and early 2009 before recouping around half their losses over the last year.