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Property prices nationwide were up 3.3 per cent in the second quarter of 2018, according to the latest house price index from the Halifax.
House prices hit a new record of £230,280 according to the research, although the market still remains cautious. Prices were up 1.4 per cent in July and 1.3 per cent on a quarterly basis.
The figures mark the largest increase seen since last November.
Managing director of Halifax, Russell Galley, said: ‘Despite the recent modest improvement in mortgage approvals, the latest survey data for new buyer enquiries and agreed sales suggest that approvals will remain broadly flat until the end of the year. In contrast, the labour market remains robust, with the numbers of people in employment rising by 137,000 in the three months to May with much of the job creation driven by a rise in full-time employment. Pressures on household finances are also easing as growth in average earnings continues to rise at a faster rate than consumer prices.’
Galley also suggested that the recent Bank of England rate rise, from 0.5 per cent to 0.75 per cent, was unlikely to have a significant impact on either mortgage affordability or transaction volumes.
Founder and Managing Director of Online Estate Agency, House Network, Mark Readings, added: ‘The UK property market remains resilient despite political uncertainty. The second half of the year is proving to be more positive, with many areas continuing to see moderate growth. At House Network, we are seeing record levels of market appraisals being undertaken which would suggest homeowners are positive about the market as they develop Brexit fatigue. Following the recent moderate rate hike to 0.75 by the BOE, mortgage rates still remain low and this small increase is unlikely to put anyone off buying a property as rental prices continue to increase.’