UK house prices leapt upwards by 1.6% in August, according to the Nationwide.
The three-month-on-three-month change was 3.3%, up from 2.7% in July. This was the steepest rise since February 2007.
House prices over the year are now 2.7% below their level of a year ago – an improvement from the 6.2% year-on-year decline reported in July, but still 14.4% below their peak in October 2007.
Martin Gahbauer, chief economist at the Nationwide, urged caution in interpreting the figures. He pointed out that transactions – at 48,000 in July – were far below the 70 – 80,000 turnover rate historically associated with stable prices. He suggested that a shortage of supply might be underpinning prices.
28/08/09 Financial Times 3
Times 54
Daily Telegraph 4
Guardian 27
Independent 42
