UK house price growth firmed up in February, Halifax says
The quarterly rate of UK house price growth firmed up for a second consecutive month in February as a result of increases in real earnings and spending power, the results of a widely-followed sector survey showed.
The average home prices dipped by 0.3% month-on-month to reach £192,372 according to mortgage lender Halifax, although the year-on-year pace of change cooled to 8.3% from a reading of 8.5% in the month before.
Over the three months to February they gained 2.6%, up from the 1.8% rise seen in the three months to January.
Commenting on the data Martin Ellis, housing economist, said: “The firming in price growth shown by the recent pick-up in the three month-on-three month comparison and indications of a modest rise in activity are likely to be due to a boost to housing demand as a result of increases in real earnings and spending power, further recent falls in mortgage rates and stamp duty changes.
“The supply of both new and second-hand homes available for sale remains low; another factor that is likely to be supporting house prices. Supply remains tight despite house-building in England increasing for the second consecutive year in 2014 and a recent rise in the number of properties coming on to the market.”
Economists had pencilled in a drop of 0.3% on the month and a gain of 8.5% on the year.