Buoyancy returns to UK housing market, the Halifax says

A mortgage lender has suggested that "some buoyancy" is returning to the UK housing market as it reported property price rises.

The Halifax, part of Lloyds Banking Group, said the average UK home cost £222,293 in August, a 1.1% increase on the previous month.

The high level of people in work had added to demand, it said.

The Halifax said annual price rises had accelerated in August, in contrast to rival lender, the Nationwide.

The annual increase was estimated to be 2.6%, according to the Halifax, although it does calculate the figures in a slightly different way to the Nationwide.

The Halifax also said prices had risen by 0.1% in the past three months compared with the previous quarter.

"House prices should continue to be supported by low mortgage rates and a continuing shortage of properties for sale over the coming months," said Russell Galley, from the Halifax.

Overall, most commentators suggest that the UK housing market is relatively static at the moment with relatively little change in prices and the number of sales.

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