UK house prices rise to three-month high

Halifax said UK house prices rose 0.7% in August versus 0.4% in July, the largest monthly increase in three months, after the partial withdrawal of tax credits on property purchases. The number of property purchases fell in July when the one-year exemption from stamp duty expired for the first £500,000 to buy a home in England and Northern Ireland, but other housing market metrics suggest the gradual expiration of the tax credits has not led to a sharp slowdown.

On an annual basis, British house prices fell to 7.1% in the twelve months to August, the lowest level in five months, compared to the same period last year, and compared to 7.6% in July.