Halifax: UK Annual House Price Inflation Picks Up In August

--Halifax UK July House Prices +1.1% m/m; +0.1% 3m/3m; +2.6% 3my/y

     LONDON (MNI) - UK house price growth picked up on monthly, quarterly and

annual readings in August, data from the Halifax, the UK's leading leading

mortgage provider, showed.

     The Halifax UK House Price Index was up 1.1% on the July reading, up 0.1%

in the three months through August and on a year ago, house prices were up 2.6%

on a 3 month/3 month reading, up from July's reading of 2.1%.

     The Halifax said continued tight supply was likely to offer support to

house prices over coming months, although demand had waned somewhat.

     "House prices should continue to be supported by low mortgage rates and a

continuing shortage of properties for sale over the coming month," Russell

Galley, Managing Director, Halifax Community Bank, said.

     "Recent figures for mortgage approvals suggest some buoyancy may be

returning, possibly on the back of strong recent employment growth, with the

unemployment rate falling to a 42 year low. However, wage growth is still

lagging increases in consumer prices, which is likely to add pressure on

household finances and increase affordability challenges for some buyers," he

added.

     Data from both the British Bankers' Association and the Bank of England had

shown a slowing in both mortgage applications and approvals in recent months,

although there was a modest pick-up in the July data.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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