Image credit: Flickr/Raphael Chekroun

House prices jumped 10.2% in July

The monthly Halifax survey showed July's annual change in house prices was above 10% for the first time since just before the financial crisis.

by Emma Haslett
Last Updated: 17 Dec 2015

The year-on-year rise in house prices rocketed to 10.2% in July, figures by Halifax showed this morning: the first time that figure's risen above 10% since September 2007. It's been rising steadily along with the recovery - in June it was 8.8%.

The report showed month-on-month prices rose 1.4% (rather higher than the 0.1% mooted by Nationwide last week), while the quarterly figure leaped from 2.3% to 3.6% in July.

Was it too much to hope the suggestion property fever is calming down was going to last? In June, Halifax's figures showed a -0.4% fall in month-on-month prices, which indicated buyers were no longer falling over one another to get their hands on property.

To be honest, though, the month-on-month figure isn't usually a good indicator: since the beginning of this year, it's swung between a -2.5% fall in prices and 4% growth. The annual and three-month indicators are usually more reliable - and both are still showing a steady rise in prices.

Which puts yet more pressure on the Bank of England to consider raising interest rates. Word is that some members of the Monetary Policy Committee are thinking about changing their votes to a resounding 'yes' at the next meeting. Whether that translates to a higher rates earlier than expected, we have yet to find out - but with property prices continuing their rise and suggestions unemployment might dip below 6% before the end of the year, the heat is on.

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