Reports from Halifax show that for the first time ever, the average price of a house in the UK is now more than £200,000.
For the fourth month in a row, house prices in the UK have gone up, reaching record highs as June marks a 1.7% rise on the previous month. The average price of a home in the UK is now £200,280 according to figures from Halifax. The fastest price growth was reportedly seen in Greater London, while across the country the cost of house per square metre has gone up by almost 20% in the last five years according to the banking giant.
Equivalent figures from Nationwide however tell a slightly different story. They claim that inflation on house prices has actually fallen to 3.3%, with their reported average cost sitting at £195,055. Each bank uses their own data to come up with these figures and so some degree of discrepancy is to be expected, and Nationwideís average reported price is still historically high, despite the 3.3% fall they are claiming.
The driving force behind the reported increase in prices is, according to Halifax, a shrinking supply of houses for sale coupled with only a ìmodest pick-up in demandî.
Martin Ellis of Halifax say that the slow but arguably steady increase in housing demand is down to ìeconomic growth, higher employment, increasing real earnings growth and very large mortgage ratesî.
This comes as inflation across the UK has also gone up, rising by 1% to reach 9.6% in June.
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