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| House prices edge up again, says Halifax | House prices edge up again, says Halifax |
| (about 2 hours later) | |
| House prices are continuing to edge up, according to the UK's largest mortgage lender, the Halifax. | |
| Measured on an annual basis, house prices in June rose by 8.8%, up from 8.7% in May. | Measured on an annual basis, house prices in June rose by 8.8%, up from 8.7% in May. |
| However, the survey provides further evidence that the rate of house price growth is starting to moderate. | However, the survey provides further evidence that the rate of house price growth is starting to moderate. |
| On a monthly basis, prices fell by 0.6% between May and June. This was the fourth monthly fall since last December. | On a monthly basis, prices fell by 0.6% between May and June. This was the fourth monthly fall since last December. |
| On the more reliable quarterly measure, prices rose by 2.3% in the three months to June. | On the more reliable quarterly measure, prices rose by 2.3% in the three months to June. |
| That figure has changed little since June 2013. | That figure has changed little since June 2013. |
| The average house price across the UK is now £183,462, said the Halifax. | The average house price across the UK is now £183,462, said the Halifax. |
| "Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence, although real earnings growth remains sluggish," said Stephen Noakes, Halifax's mortgage director. | "Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence, although real earnings growth remains sluggish," said Stephen Noakes, Halifax's mortgage director. |
| New rules | New rules |
| Last week, the Nationwide Building Society said prices had risen by 11.8% in the last year, and were now higher than at the peak of the market in 2007. | Last week, the Nationwide Building Society said prices had risen by 11.8% in the last year, and were now higher than at the peak of the market in 2007. |
| However, in June, the Bank of England's Financial Policy Committee (FPC) acted to take the heat out of the housing market. | However, in June, the Bank of England's Financial Policy Committee (FPC) acted to take the heat out of the housing market. |
| The committee was worried that both banks and homeowners could become saddled by too much debt, which would harm the economy. | The committee was worried that both banks and homeowners could become saddled by too much debt, which would harm the economy. |
| As a result, the FPC ruled that lenders will have to apply tighter affordability checks to anyone who wants to take out a mortgage. | As a result, the FPC ruled that lenders will have to apply tighter affordability checks to anyone who wants to take out a mortgage. |
| Borrowers will need to prove they can withstand a 3% rise in interest rates from their current low level. | Borrowers will need to prove they can withstand a 3% rise in interest rates from their current low level. |
| In addition, lenders will only be able to offer riskier mortgages - where the amount lent is 4.5 times the borrower's annual income - to no more than 15% of their customers. | In addition, lenders will only be able to offer riskier mortgages - where the amount lent is 4.5 times the borrower's annual income - to no more than 15% of their customers. |
| The new rules will take effect in October this year. | The new rules will take effect in October this year. |