UK HOUSE prices rose 0.6 per cent in June due to buyers’ improved confidence and a shortage of properties, according to the Halifax House Price Index released today.
The data showed that house prices rose for the fifth consecutive month. Prices in the three months to June were 3.7 per cent higher year-on-year, which is the biggest annual increase for three years.
“Improved confidence in both the housing market and the economy, combined with a shortage of properties available for sale, appear to be pushing up house prices,” said Martin Ellis, housing economist at Halifax.
“The Funding for Lending Scheme is also likely to be boosting the market by helping to reduce mortgage rates. There are also early indications that the Help to Buy: equity loan scheme may be stimulating demand.
“Despite these signs of improvement in the market, the still subdued economic background and weak income growth are expected to remain significant constraints on housing demand and activity during the second half of 2013.”