MNI: UK Annual House Price Infla Accelerates In Sept - Halifax

-- Halifax UK September House Prices +0.8% m/m; +1.4% 3m/3m; +4.0% 3my/y

By Kieran Williams

     LONDON (MNI) - UK house price inflation slowed on a monthly basis in

September at 0.8% from a revised 1.5% in August, but the annual pace picked up

to 4.0% from 2.6% in August due to a favourable base effect. 

     On a quarterly basis, house prices rose 1.4% in the July-September period,

the fastest pace of increase in this measure since February according to data

from Halifax, the UK's leading mortgage provider.

"The annual rate of growth has picked up for the second consecutive month," said

Russell Galley, Managing Director, Halifax Community Bank, adding that "the

average house price is now stg225,109 - the highest on record."

     The Halifax said continued tight supply has continued with sales

instructions hovering near an all time low, while sold employment growth has

also contributed to house price growth. Despite this prices remain lower than at

the start of the year and looking ahead Galley says "increasing pressure on

spending power and continuing affordability concerns may well dampen buyer

demand."

Bank of England mortgage approvals fell in the recent data after previously

rising to the highest levels since January, though remain in a narrow monthly

range between 65,100 and 68,700 which has held for the past 11 months.

Ahead of the Bank of England meeting in November, with increasing speculation of

a rate hike, Galley says "We do not anticipate this will have a significant

effect on transaction volumes."

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

--MNI London Bureau; +44 203 865 3809; email: kieran.williams@marketnews.com

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