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| UK house prices rising 'at highest rate since 2010' | UK house prices rising 'at highest rate since 2010' |
| (35 minutes later) | |
| UK house prices rose 5.4% in the three months to August compared to the same period last year, according to the Halifax's latest house price survey. | UK house prices rose 5.4% in the three months to August compared to the same period last year, according to the Halifax's latest house price survey. |
| This is the highest annual rate since June 2010. | This is the highest annual rate since June 2010. |
| Prices over the quarter were 2.1% higher than the previous period, the lender said. | Prices over the quarter were 2.1% higher than the previous period, the lender said. |
| Housing market activity was up thanks to an improving economy, low interest rates, and government-backed schemes such as Help to Buy, it said. | Housing market activity was up thanks to an improving economy, low interest rates, and government-backed schemes such as Help to Buy, it said. |
| Earlier this week, the Organisation for Economic Co-operation and Development (OECD) increased its 2013 growth forecast for the UK economy to 1.5% from an earlier estimate of 0.8%. | |
| Last month, Nationwide reported a 1.4% rise in the three months to August from the same period last year, the biggest increase since mid-2010, it said. | Last month, Nationwide reported a 1.4% rise in the three months to August from the same period last year, the biggest increase since mid-2010, it said. |
| Martin Ellis, the Halifax's housing economist, said: "Overall, house prices are expected to rise gradually over the remainder of the year." | Martin Ellis, the Halifax's housing economist, said: "Overall, house prices are expected to rise gradually over the remainder of the year." |
| The Halifax believes below-inflation earnings rises "are likely to act as a brake on the market". | The Halifax believes below-inflation earnings rises "are likely to act as a brake on the market". |
| Property bubble | |
| The number of mortgage approvals for house purchases - an indicator of completed house sales - rose 4% to 60,600 between June and July. | The number of mortgage approvals for house purchases - an indicator of completed house sales - rose 4% to 60,600 between June and July. |
| This is the first time that approvals have exceeded 60,000 since early 2008. | This is the first time that approvals have exceeded 60,000 since early 2008. |
| Help to Buy is available to both first-time buyers and people moving into a newly built home worth up to £600,000. It offers a government-backed loan of up to 20% of the price of the property and aims to make it easier to buy property with a deposit of just 5%. | |
| The rise in prices and market activity, coupled with the Help to Buy scheme have increased fears that the country could be heading for another property bubble. | |
| But last month Mark Carney, governor of the Bank of England, said he was "acutely aware" of the risks and had a "toolkit" of measures he could employ to combat unrestrained mortgage lending. | |
| Matthew Pointon, property economist at consultancy Capital Economics, said: "A short-term imbalance between housing demand and the number of homes on the market is driving price increases. | |
| "But the rise in wholesale interest rates seen over the past few weeks may soon start to feed through to mortgage rates, dampening demand." | |
| There are already some signs that market may be slowing, with the Halifax reporting that prices rose 0.4% in August from July, a lower rate than economists had forecast and lower than July's 0.9%. |