Investing.com – House prices in the U.K. rose significantly more-than-expected in June, industry data showed on Wednesday.
In a report, the Halifax Bank of Scotland said its House Price Index jumped by 1.2% in June, after rising by 0.4% in May, whose figure was upwardly revised from a 0.1% gain.
Economists expected the index to rise by 0.1% in June.
The report showed that U.K. house prices fell at an annualized rate of 3.5% in June, while prices in the three months to June were 0.5% lower than the previous three months.
Commenting on the report, Halifax housing economist Martin Ellis said, "Low interest rates, an increase in the number of people in employment and some tightening in market conditions earlier in the year are likely to have been the main factors behind the recent improvement in price trends.”
"The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand. Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances," he added.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.3% to trade at 1.6013.
Meanwhile, European stock markets were mixed after the open. The FTSE 100 dipped 0.1%, the EURO STOXX 50 fell 0.2%, France’s CAC 40 added 0.1%, while Germany's DAX was up 0.11%.
In a report, the Halifax Bank of Scotland said its House Price Index jumped by 1.2% in June, after rising by 0.4% in May, whose figure was upwardly revised from a 0.1% gain.
Economists expected the index to rise by 0.1% in June.
The report showed that U.K. house prices fell at an annualized rate of 3.5% in June, while prices in the three months to June were 0.5% lower than the previous three months.
Commenting on the report, Halifax housing economist Martin Ellis said, "Low interest rates, an increase in the number of people in employment and some tightening in market conditions earlier in the year are likely to have been the main factors behind the recent improvement in price trends.”
"The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand. Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances," he added.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.3% to trade at 1.6013.
Meanwhile, European stock markets were mixed after the open. The FTSE 100 dipped 0.1%, the EURO STOXX 50 fell 0.2%, France’s CAC 40 added 0.1%, while Germany's DAX was up 0.11%.