House prices accelerate

6th June 2014

Halifax has revealed that the average UK house price jumped 3.9% in May, the biggest monthly increase since October 2002, while average UK property prices climbed 8.7% to £184,464 in the three months to May when compared to the same period last year.

"Demand is still strong and continues to be supported by a strengthening economic recovery. Consumer confidence is being boosted by a rapidly improving labour market and low interest rates, although growth in average earnings still remains weak. However, there are signs of a revival in housebuilding which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term,” explained Stephen Noakes, mortgages director at Halifax. Meanwhile, the Times’ Anne Ashworth poses the question: have house prices already peaked? She cites Nationwide’s chief economist, Robert Gardner, who sees: "tentative signs that activity may be starting to moderate”.

Source: The Times (06/06/2014)