DCLG: House prices rise 0.6% in August

| October 11, 2011

Official data from the Department for Communities and Local Government (DCLG) today revealed UK house prices rose by 0.6% in August compared with July.

However, on an annual basis, house prices are 1.3% lower, taking the average UK house price to £208,476.

The data from the DCLG is based on mortgage completions figures collected by the Council of Mortgage Lenders (CML).

In comparison, the Nationwide Building Society reported that prices fell by 0.6% in August on a monthly basis, while the Halifax posted a 1.2% fall for the month.

Uncertainty surrounding the economy drove prices lower in the first part of the year and the housing market is expected to remain subdued in the short-term but many reports suggest prices will stabilise throughout the remainder of the year.

In other news today, the Royal Institute of Chartered Surveyors said “fears over the economy continued to impact negatively on the housing market” with fewer properties being put up for sale in September.

Also today, the CML reported an improvement in the mortgage market.

According to the CML, 52,000 home loans were advanced for house purchases during the month – a rise of 7% when compared with July.

An increase was also noted in the amount of remortgaging.

However, the Council noted that mortgage activity is expected to remain weak due to uncertainty surrounding the UK and European economies.

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