As home prices increased in June, the latest data from Halifax indicated that the average price of a home in Britain is now above the water mark level of £ 200,000. In a report from the telegraph.com , the dust from the recent polls have pushed the prices up by 1.7 percent and settling at £ 202,280.
The previous peak for home prices in Britain was recorded way back in August 2007, reaching the price of £ 199,612.
According to the Halifax Banks Housing Economics Chief Martin Ellis, "House prices in the three months to June were 3.3 percent higher than in the preceding months. This measure of the underlying rate of house price growth picked up following two successive falls."
He further added, "Supply remains very tight with the stock of homes available for sale currently at record low levels. This shortage has been a key factor maintaining house price growth at a robust pace so far in 2015. Economic growth, higher employment, increasing real earnings growth and very low mortgage rates are all supporting housing demand with signs of a recent modest pick-up in demand."
The pricing hitting record rates were echoed by the Royal Institution of Chartered Surveyors. In a report from reuters.com, the RICS said that the monthly house price balance increased by +40 in June from +34 in May. This was the highest jump since July 2014 and was way beyond the projections and expectations of many economists polled by Reuters.
According to RICS Chief Economist Simon Rubinsohn, "As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable."
Rubinsohn further projects that house prices and rent costs would rise significantly higher and faster compared to wages in the medium term.
