Halifax has reported that house prices in the three months to August increased by 3.7% against the same period a year earlier with the average house showing little change from last month at £229,958.
On a monthly basis, prices remained steady, seeing a small rise of 0.1% in August, while in the latest quarter (June-August) prices were 1.9% higher than in the preceding three months (March-May 2018).
Russell Galley, managing director of Halifax, said: “While the pace of employment growth has recently slowed, a low unemployment rate and a gradual pickup in wage growth are helping to support household finances.
“This has been accompanied by interest rates still remaining at a historically low rate and a stable, yet constrained, supply of new homes onto the market further supporting house prices.”
Steve Seal, director of sales and marketing at Bluestone Mortgages, added: “The steady rise of house prices can be attributed to a lack of property stock which continues to stifle movement in the market, whilst driving up prices. Consumer confidence is however, being kept relatively steady by the work of government help to buy and shared ownership schemes.
“Despite this, not everyone is able to gain access to the support that they need. Rising living costs continue to challenge the affordability of those unable to access mainstream lending, such as the self-employed. In order to make mortgage applications achievable for all consumers, resources must be made available to provide extra financial and holistic support.
“Specialist lenders can help, recognising when factors are outside of an individual’s control and offering the tailored solutions that these borrowers deserve to get onto the property ladder.”