Halifax: House prices hit £200,000 record

The average cost of properties in the UK has exceeded £200,000 for the first time, according to the Halifax. It said house prices jumped by 1.7% in June compared with the previous month, marking their fourth consecutive monthly rise.

Annual price inflation also rose significantly, from 8.6% in May to 9.6% in June. It brings the average price of a UK house or flat to £200,280, the highest amount recorded by the Halifax measure. However the figures are in stark contrast to those produced by rival lender, Nationwide.

Last week it said that house price inflation had fallen to 3.3% a year, bringing the average price to £195,055.

Halifax said the rise was being driven by tight supply with the number of homes for sale now at a record low. Halifax's housing economist Martin Ellis said there were now signs of a recent "modest pick up in demand".

"Economic growth, higher employment, increasing real earnings growth and very low mortgage rates are all supporting housing demand," he added.

The lender, which uses data from its own mortgage lending, said average house prices per square metre had risen by 18% since 2010, with prices in Greater London seeing the fastest growth.

bbc.com