UK house prices soar in August, according to Nationwide figures

1st September 2012  |  12:00am

UK house prices soar in August, according to Nationwide figures

Property prices in the UK soared much faster than expected in August, data from Nationwide has shown.

The mortgage lender says that prices rose 0.8 percent month-on-month last month in comparison with a 0.2 percent rise in July. House prices increased by 11 percent on an annual basis – this is up 10.6 percent in July. The data outstrips forecasts, which apparently predicted a 10.1 percent increase.

It’s interesting that August has proved to be a good month for the housing market – as it’s traditionally a quiet time of year. With interest rates still low, global turbulence and insecurity increasing, it’s perhaps understandable that London property is proving so popular.

Some analysts claim that growth will start to slow in the next few months as the general election looms on the horizon. However, London property is still a safe bet – and any kind of reduction in price is likely to be minimal or prices will simply temporarily level out rather than fall.

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The Guardian