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| Version 0 | Version 1 |
|---|---|
| House prices 'continue to rise' | House prices 'continue to rise' |
| (about 1 hour later) | |
| UK house prices rose again in August, increasing by 1.6% from July, the fourth monthly rise in a row. | |
| According to the Nationwide, the average price of a home is now £160,224, up from £158,871 in July. | |
| While prices are still lower than last year, the annual rate of decline in property values slowed sharply to 2.7%, compared with July's 6.2% fall. | While prices are still lower than last year, the annual rate of decline in property values slowed sharply to 2.7%, compared with July's 6.2% fall. |
| The Nationwide said a key factor in lifting prices was "the exceptionally low level of interest rates". | The Nationwide said a key factor in lifting prices was "the exceptionally low level of interest rates". |
| Rates have been kept on hold at 0.5% by the Bank of England since March. | Rates have been kept on hold at 0.5% by the Bank of England since March. |
| 'Bumpier' road ahead | 'Bumpier' road ahead |
| The three-month on three-month comparison of property prices - considered a less volatile measure than the monthly data - showed a rise of 3.3% in August, up from 2.7% in July. | The three-month on three-month comparison of property prices - considered a less volatile measure than the monthly data - showed a rise of 3.3% in August, up from 2.7% in July. |
| House price surveys explained Getting help with your mortgage | |
| Nationwide's chief economist Martin Gahbauer said lower interest rates had given existing homeowners with tracker or standard variable mortgages a welcome breathing space. | Nationwide's chief economist Martin Gahbauer said lower interest rates had given existing homeowners with tracker or standard variable mortgages a welcome breathing space. |
| "The fall in debt serving costs has meant that fewer homeowners are under immediate financial pressure to sell than might have been expected in a recessionary economic background with rising unemployment," he said. | "The fall in debt serving costs has meant that fewer homeowners are under immediate financial pressure to sell than might have been expected in a recessionary economic background with rising unemployment," he said. |
| Mr Gahbauer added that as a result, fewer second-hand properties had come onto the market "than is normally the case in recessions", which moved the balance of supply and demand "more in favour of sellers over the course of 2009". | Mr Gahbauer added that as a result, fewer second-hand properties had come onto the market "than is normally the case in recessions", which moved the balance of supply and demand "more in favour of sellers over the course of 2009". |
| At the same time, he said lower interest rates had improved the affordability of mortgages for first-time buyers. | At the same time, he said lower interest rates had improved the affordability of mortgages for first-time buyers. |
| However, he cautioned that when interest rates ultimately start to rise again as the wider economy recovers, the strong house price increases of recent months "would become difficult to sustain". | However, he cautioned that when interest rates ultimately start to rise again as the wider economy recovers, the strong house price increases of recent months "would become difficult to sustain". |
| "The eventual exit from exceptionally loose monetary policy could make the recovery in the housing market bumpier than some might expect after the last few months of price increases," said Mr Gahbauer. | "The eventual exit from exceptionally loose monetary policy could make the recovery in the housing market bumpier than some might expect after the last few months of price increases," said Mr Gahbauer. |