U.K. house prices grew at the fastest pace in nine months in June, data from Lloyds Banking Group’s Halifax division showed Wednesday.
House prices advanced 9.6 percent year-on-year in three months to June, a similar rate of growth was last seen in September 2014. Economists had forecast the rate to ease to 8.3 percent from 8.6 percent in three months to May.
In three months to June, house prices were 3.3 percent higher than in the preceding three months. The quarterly rate of change picked up following two successive falls.
Month-on-month, house prices advanced 1.7 percent in June. This was the fourth consecutive monthly increase and exceeded a 0.3 percent rise forecast by economists.
“Supply remains very tight with the stock of homes available for sale currently at record low levels,” Martin Ellis, a housing economist, said. “This shortage has been a key factor maintaining house price growth at a robust pace so far in 2015.”
Economic growth, higher employment, increasing real earnings growth and very low mortgage rates are all supporting housing demand with signs of a recent modest pick-up in demand, added Ellis.
The material has been provided by InstaForex Company – www.instaforex.com