LONDON: British house prices barely rose during August, according to a survey from mortgage lender Halifax on Monday that added to other signs of moderation in the housing market.
House prices edged up 0.1 per cent in August, slowing sharply from 1.2 per cent in July, Halifax said. Prices rose 9.7 per cent on an annual basis in the three months to August, slower than July’s 10.2 per cent gain.
Economists polled by Reuters had expected annual growth of 9.9 per cent.
“There are some signs of an improvement in housing supply, both in terms of more second-hand properties coming onto the market and increased numbers of new homes,” said Martin Ellis, housing economist at Halifax.
The number of new homes completed in England between April and June rose by 7 per cent compared with the same period last year, Halifax said citing industry data.
But it also noted signs of shortages of supplies and skilled labour which could hold back the pace of house-building.
The Bank of England has identified the housing market as the biggest domestic risk to Britain’s economic recovery and has taken steps to avoid a big run-up in risky mortgage debt. The BoE says it expects it can control the housing market without having to raise interest rates.
Several measures of the housing market have suggested a slowing in the pace of price growth although lender Nationwide said on Aug. 29 that its survey showed house prices jumped by a surprisingly strong 0.8 per cent in August from July.
