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Growing Confidence In Housing Market Puts Pressure On Lenders - Times

The unexpected revival in the housing market continued in August with prices rising by an average 1.6 per cent over the month and housebuilders returning to sites in some of the country’s worst-hit regions.

Nationwide’s latest index showed that the average house price rose from £158,871 to £160,224 in the past month, bringing the total increase since the start of the year to 3.2 per cent.

The three-monthly rate of change rose from 2.7 per cent in July to 3.3 per cent in August — its highest level since February 2007, although house prices are still 14.4 per cent below their peak in October 2007, the building society said.

Separate figures from the National House-Building Council (NHBC) show that confidence in the housing market has persuaded housebuilders to start work on new homes in the East Midlands, West Midlands and Northern Ireland. Housebuilding in these regions was up by 12 per cent, 8 per cent and 36 per cent respectively in the three months to July, compared with the same period last year.