House prices increased by 0.6% in June. This was the fifth consecutive monthly rise. In the 2nd quarter of 2013, house prices were 2.1% up on the first quarter of the year (January-March). This was the biggest increase on the 3 month measure since January 2010 (2.9%).

Halifax HPI

 

Key facts

  • House prices increased by 0.6% in June. This was the fifth consecutive monthly rise
  • In the 2nd quarter of 2013, house prices were 2.1% up on the first quarter of the year (January-March). This was the biggest increase on the 3 month measure since January 2010 (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 (4.6%).

Commenting, Martin Ellis, housing economist, said:

“House prices continue to rise steadily. Prices in the three months to June were 2.1% higher than in the previous quarter, edging above the 1-2% range recorded throughout the first five months of the year. The annual rate is at its highest for nearly three years with prices in the three months to June 3.7% higher than in the same three months last year.

“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. 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.”