Quarterly house price growth has increased for the first time since March, according to the latest Halifax house price index, with house prices 2.6% higher than in the same three months a year earlier.
Russell Galley, Managing Director at Halifax Community Bank, said: “The annual rate of growth increased from 2.1% in July to 2.6% in August with the average house price now £222,293, which is just above the previous high of December 2016 (£222,190).
“House prices should continue to be supported by low mortgage rates and a continuing shortage of properties for sale over the coming months.”
Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: “The short-term impact of Brexit on the housing market was probably overestimated. However, now that the government is negotiating the UK’s exit from the EU, further uncertainty seems inevitable until the final outcome becomes clearer.”
Many economists are not expecting interest rates to rise until 2019 despite inflation remaining above target, so the cheap mortgage rates that borrowers have been enjoying are unlikely to disappear any time soon.
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