- Martin Ellis, housing economist at Halifax
House prices in the U.K. cooled off in August amid signs of increasing supply of new homes on the market, adding to other evidence of moderation in the housing market. House prices edged up 0.1% in August, falling sharply from 1.2% in July, Halifax said. Prices advanced 9.7% to 186,270 pounds on an annual basis in the three months to August, slower than July's 10.2% gain. Halifax said there were "tentative signs" that a balance between demand and supply might be emerging which, if sustained, would help to cool the pace of price growth. Halifax also added that the prospect of an interest rate hike at some point over the coming months was likely to curtail demand. Meanwhile, there was evidence that more second-hand properties were coming on to the market, as well as rising number of new homes.
However, the Halifax house price index has been volatile in recent months. So far this year it has registered five monthly price increases and three falls. Meanwhile, the most recent data from both Nationwide and the Land Registry showed a renewed surge in property prices. Nationwide said prices soared 0.8% on month in August, traditionally a quiet period for the housing market, compared with a 0.2% gain in July, pushing the annual rate to 11%, while the Land Registry report covering July showed the average property increased in price by 1.7%, or nearly £100 a day, to £175,600.
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