House prices up by 0.4% in August

House prices up by 0.4% in August

The average house price in the UK grew by as much as 0.4 per cent in August, with London driving much of the activity, new figures have revealed. It means that growth over the first eight months of the year amounts to 3.9 per cent, according to Hometrack's latest housing survey. Property prices in London grew by 0.9 per cent in August, fuelled by excessive demand and not enough available stock.

However, Hometrack has said that house price growth in the capital cannot be sustained in the medium-term. Richard Donnell, director of research, said: "Whilst the recent rise in interest rates has yet to impact on the market surveys, the sensitivity of the housing market to interest rates means that the London-inspired mini boom of the last eight months is likely to run out of steam over the autumn."