United Kingdom: Home prices rise the most in over two years
September 3, 2012
In August, the price of a typical house rose a strong 1.3% over the previous month, according to data collected by the mortgage lender Nationwide Building Society (NBS). The reading represents the largest increase since January 2010, contrasting the 0.8% decline seen in July and coming ahead of market expectations, which expected home prices to rise only 0.1%. The NBS acknowledged the favourable developments in August, but warned that "monthly price changes have been impacted by a number of one-off factors this year, such as the ending of the stamp duty holiday for first time buyers. These are factors that cannot be controlled by the usual process of seasonal adjustment". Building on the strong monthly rise, home prices reached approximately GBP 164,700 which was 0.7% below the level observed in the same month last year. The reading represents an improvement over the 2.6% contraction seen in July.