Halifax: House prices up by 1% in August

08 September 2006
According to the Halifax house price index, the month of August saw property prices rise by a full one per cent.

The total annual change in house prices, according to the index, is now over eight per cent with the average property in the UK (seasonally adjusted) costing £179,043.

Halifax reported that housing market activity remained firm, although the UK's largest mortgage lender also noted that there was still an indication that the property price boom of recent months is receding somewhat, despite the high headline rates.

"There are signs…that the market is slowing with an overall increase in house prices over the three months from May to August of only 0.2 per cent, compared with a 2.9 per cent rise in the preceding three months," said chief economist Martin Ellis.

"August's increase was smaller than the 1.4 per cent rise in August 2005, contributing to a slowdown in the annual rate of house price inflation to 8.2 per cent from 9.4 per cent in June.

"We expect this trend to continue over the coming months with the annual rate easing to 5 per cent by the end of the year," he concluded.

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