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| House prices 'increase by 0.8%' | House prices 'increase by 0.8%' |
| (30 minutes later) | |
| House prices rose by 0.8% in August compared with July - the second monthly rise in a row, says the Halifax. | House prices rose by 0.8% in August compared with July - the second monthly rise in a row, says the Halifax. |
| Property values were 10.1% lower in the three months to August compared with the same period a year ago, the survey found. | Property values were 10.1% lower in the three months to August compared with the same period a year ago, the survey found. |
| The average UK home was now valued at £160,973, said the Halifax, now part of the Lloyds Banking Group. | The average UK home was now valued at £160,973, said the Halifax, now part of the Lloyds Banking Group. |
| A lack of supply and greater demand for homes has pushed up prices in recent times, various surveys suggest. | A lack of supply and greater demand for homes has pushed up prices in recent times, various surveys suggest. |
| "Demand for housing has increased since the start of the year due to better affordability and low interest rates," said Halifax housing economist Martin Ellis. | "Demand for housing has increased since the start of the year due to better affordability and low interest rates," said Halifax housing economist Martin Ellis. |
| Survey | Survey |
| The survey showed that the monthly change in prices had been upwards in four of the first eight months of 2009. | The survey showed that the monthly change in prices had been upwards in four of the first eight months of 2009. |
| Prices in the three months to August compared with the previous three months were 1.7% higher, the biggest rise in this measure since July 2007. | Prices in the three months to August compared with the previous three months were 1.7% higher, the biggest rise in this measure since July 2007. |
| The latest rise pushed the price of the average UK home to a few pounds higher than it was at the end of 2008, but still £13,268 lower than in August 2008. | The latest rise pushed the price of the average UK home to a few pounds higher than it was at the end of 2008, but still £13,268 lower than in August 2008. |
| But there was a note of caution in the survey, which pointed out that activity in the housing market remained less than half of the level that was seen in mid-2007. | But there was a note of caution in the survey, which pointed out that activity in the housing market remained less than half of the level that was seen in mid-2007. |
| A lack of new homes coming on to the market was a significant factor in the latest round of rising prices, and so prices could stabilise again if potential sellers surged into the market. | A lack of new homes coming on to the market was a significant factor in the latest round of rising prices, and so prices could stabilise again if potential sellers surged into the market. |
| Changes | |
| The latest figures show a continuing divergence in house price trends in reports from two of the UK's leading lenders. | |
| The Nationwide Building Society, which published its survey for August two weeks ago, said that prices in 2009 had risen by £7,000 since the start of the year - whereas the Halifax survey suggested prices had remained at roughly the same level throughout this year. | |
| However, both lenders still calculate the average UK home to be worth about £160,000. | |
| Mr Ellis, at the Halifax, said that affordability of mortgages had improved for new borrowers. Typical mortgage payments for a new borrower had fallen, from a peak of 48% of average disposable earnings in September 2007 to 29% in August 2009. | |
| However, the latest figures from the Bank of England showed that the cost of a five-year fixed-rate mortgage continued to climb during August, despite wholesale funding costs dropping. | |
| The average interest rate on a deal for a borrower offering a 25% deposit rose from 5.68% to 5.72% in August, whereas five-year swap rates - the measure used by lenders to judge the cost of mortgages - fell from a recent peak of 3.79% on 7 August to 3.34% at the end of the month. |