"The market is currently benefiting from the ‘aggregation of marginal gains' where incremental improvements across a range of key market drivers compound to slowly but surely build momentum"
- Miles Shipside, Rightmove director and housing market analyst
Britain's home sellers increased asking prices for a seventh consecutive month in July, pushing them to a record high, cementing expectations the housing market is experiencing strong recovery. Data from the Rightmove Plc. showed that prices soared 0.3% to a median of 253,658 pounds, from a 1.2% gain a month earlier. In addition to that prices jumped 4.8% annually, while prices in London surged 12% to an average of 515,379 pounds. The company now projects a 4% increase in prices over this year, double the figure expected previously. This data follows similarly upbeat readings from Halifax, Hometrack and Nationwide Building Society, which all showed a solid gain in home prices. The improvement is adding to signs that measures taken by the BoE and the government to ease the supply of credit are working and making demand for property stronger with each month, and reflecting a broader-based recovery in the housing market.
Also Monday the Ernst & Young Item Club pointed out that the U.K. economy will expand faster than expected this year, as consumer cut into savings to keep spending. The gross domestic product is now expected to grow 1.1% this year, up from a 0.6% growth estimated in April. Moreover, growth will strengthen to 2.2% in 2014 and reach 2.6% in 2015.
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