Prices in the latest three months (June-August) were also 3.0% higher than in the preceding three months. Again, the quarterly rate of change increased from July’s 2.5% but remained below June’s 3.3%.
On a monthly basis, house prices increased by 2.7% between July and August. This is the biggest monthly rise since May 2014 (+3.8%). Monthly movements, however, can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend, according to the index.
UK home sales declined by 4% between June and July, but remained above 100,000 for the second successive month, at 100,720. In contrast, sales were consistently below 100,000 between October 2014 and May 2015. Sales in the three months to July were 3% higher than in the previous three months.
Martin Ellis, Halifax housing economist, had this to say: “The underlying pace of house price growth is strong. The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices. At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand. Strengthening demand and highly constrained supply are likely to mean that house price growth continues to be robust in the short-term.”
