July 2014 (seasonally adjusted)
Annual change +10.2%
Quarterly change +3.6%
Monthly change +1.4%
Average Price £186,322
According to these latest figures from the Halifax, House prices in the three months to July were 3.6% higher than in the three months to April.
In terms of annual rises, prices were 10.2% higher in the three months to July than in the same three months last year.
It seems that housing demand continues to be supported by the economic recovery, growth in employment, improving consumer confidence and low mortgage rates. However, Halifax state that earnings growth is still lagging behind consumer price inflation.
Shaun Richards is an independent economist writing in MindfulMoney.co.uk says:
“…There is quite a problem explaining today’s 10.2% increase in house prices with an increase in average earnings of only 0.3% in the three months to May
“If you look at the figures they still do not quite add up as even a cursory glance at them shows that five times them does not get you to the current UK average house price of £186,322 for the Halifax.
“That is because they use the median (50% of the population) rather than the mean or average which is pulled higher by people such as Paul McCartney. It suddenly becomes £676.7 per week or some 22% higher. So the Halifax has gone, in my opinion to quite a lot of effort to keep the ratio down to 5. Putting it another way using median earnings for everyone the ratio of earnings to house prices is now 6.9.