As a result, house price growth between the latest three months and the preceding three months edged above the 1 to 2% range that it had been in throughout the preceding five months and the biggest increase on this measure since January 2010 when it was 2.9%.
Prices in the three months to June were 3.7% higher than in the same three months a year earlier. This was the biggest increase in this annual measure since August 2010 when it was 4.6%.
On a monthly basis house prices increased by 0.6% in June, the fifth consecutive monthly rise, confirming that house prices continue to rise steadily.
Activity has also improved in recent months. Both home sales and mortgage approvals for house purchase, a leading indicator of sales, increased in May.
‘Improved confidence in both the housing market and the economy, combined with a shortage of properties available for sale, appear to be pushing up house prices. The Funding for Lending Scheme is also likely to be boosting the market by helping to reduce mortgage rates,’ said Martin Ellis, housing economist at the Halifax.
‘There are also early indications that the Help to Buy equity loan scheme may be stimulating demand. Despite these signs of improvement in the market, the still subdued economic background and weak income growth are expected to remain significant constraints on housing demand and activity during the second half of 2013,’ he added.
