UK house prices rise in August
15th Sep 2011
The average price of UK property rose in August to defy experts' predictions that there would be another drop in British house prices, the latest study reveals.
Research carried out by LSL shows that the average cost of purchasing a UK home was £219,078 last month, an increase of 0.3 per cent on July, when average prices were £218,404.
The annual price difference fell by 2.2 per cent compared with August 2010, though transactions for the month were up by 1.5 per cent, which is in contrast to the late summer dip usually observed in the UK housing market.
According to David Newnes, director of LSL, the overall property market "bounced back" this summer, with consecutive months of price rises following falls between April and June.
"While some regions have seen prices fall, the rate of fall has shrunk. The housing market across the country is moving in the right direction. Prices in London rose most, thanks to all the cash buyers pushing up demand," he added.
However, he did note that in London, there are more buyers with large deposits and they are less exposed to the "squeeze" on mortgages that is hitting first-time buyers so hard.
Mr Newnes also stated that mortgage finance is "very cheap" at the moment, though it is hard to get if people do not have a hefty deposit.
© Zoopla Property Group Limited