Mortgage holders see property prices rise

28 August 2009

Written by Steve Olejnik

Buy to let landlords and other homeowners looking to sell or buy a property in August will have been faced with inflated prices, it would seem.

Nationwide Building Society published its monthly house price update yesterday, suggesting that the average cost of a house in the UK grew 1.6 per cent between July and this month.

The financial services provider indicated that low interest rates have had an affect on rising property prices in recent times.

Since March, the Bank of England's monetary policy committee has frozen the cost of borrowing at 0.5 per cent - a record low level.

According to the figures, property prices are down 2.7 per cent year-on-year, compared to -6.2 per cent in July.

Chief economist at Nationwide Martin Gahbauer said: "The price of a typical house rose for the fourth consecutive month in August, increasing by 1.6 per cent on a seasonally adjusted basis."

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