The residential property prices in the UK rose in June by 0.9%

In accordance with the latest report of the leading lenders of the financial group Halifax, prices for residential property in the UK rose 0.9% in July amid signs that the overall economy improves. In quarterly terms the growth rate increased by 2.1% since the beginning of 2013. In fact, the prices of houses and flats in the UK within the last three months, from may to July is higher by 4.6% than the same period in 2012.

The data also show that in annual terms prices rose by 4.6%, indicating the highest annual rate since August 2010. The average house price in the UK currently stands at £624 169 pounds, and the volume of sales is 6% higher than the same period last year.

Signs of improvement in the economy, underlined by recent data on GDP growth in the second quarter and employment growth, which increases consumer trust.

Growing confidence is likely underlies the increase in demand for housing, and programmes such as the Scheme of Financing of Lending (the Funding for Lending Scheme) and the Scheme of fair credit (Help to Buy equity loan scheme) can stimulate an increase in demand.

Prices for residential property in England, Scotland and Wales are predicted to rise gradually in the course of this year, along with weak economic growth and falling income, limiting the demand for housing.

The report also notes that the number of mortgages approved for house purchase in the UK in the second quarter of 2013 was 6% higher than in the first quarter, despite a 1% decline in may and June, according to data provided by the Bank of England. However, it is noted that the offers on the market is still small and the increase in sales over the past year was not.

As a result of tightening conditions in the housing market is price pressure on housing. However, it is reported that the total increase in the number of for sale homes can help you plan and balance supply and demand in the market.

® Maxim Savitsky 06.08.2013