UK house prices see biggest jump since 2016

U.K. house prices saw their biggest growth since 2016 in August, climbing to a record high, according to Britain’s longest-running barometer of the property market. The Halifax House Price Index, which is run by analysis company IHS Markit, found that U.K. house prices grew by 5.2% in August compared to the same month last year. It marks the strongest annual growth in prices since the end of 2016.

The price of the average U.K. house hit £245,747 ($324,241) – the first time on record that prices have surpassed £245,000. It represents month-on-month growth of 1.6% from July to August, a touch higher than the 1.5% growth forecasted by economists in a Reuters poll. The U.K.’s macroeconomic picture should become clearer in the next few months as the government’s economic support measures wind up and the “true scale of the impact of the pandemic on the labour market becomes apparent.

In data released last week, the Bank of England said the number of mortgages approved had risen from 39,900 in June to 66,300 in July, though this was still 10% lower than the 73,700 housing loans approved in February, pre-pandemic. Rural and coastal homes were proving particularly popular, with many people reassessing what they want from their home as working remotely has become the “new normal” amid the pandemic.

UK house prices see biggest jump since 2016 to hit fresh high – but it won’t last long, say property experts, CNBC, Sep 7