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| Average house price near £200,000 | |
| (40 minutes later) | |
| The average house price in the UK has almost reached £200,000, according to the latest survey from the Halifax. | The average house price in the UK has almost reached £200,000, according to the latest survey from the Halifax. |
| The UK's biggest mortgage lender said prices rose by another 0.4% in August, taking the average price to £199,770. | The UK's biggest mortgage lender said prices rose by another 0.4% in August, taking the average price to £199,770. |
| Its latest survey says the increase pushed the annual rate of house price inflation up from 11.2% to 11.4%, despite higher interest rates. | Its latest survey says the increase pushed the annual rate of house price inflation up from 11.2% to 11.4%, despite higher interest rates. |
| However, the lender predicts prices will slow down this autumn, as the past year's five rate rises take effect. | However, the lender predicts prices will slow down this autumn, as the past year's five rate rises take effect. |
| "The increase in mortgage rates since last summer is having an effect on housing affordability and will bite further during the coming months," said Martin Ellis, the Halifax chief economist. | |
| "Negative real earnings growth in the first six months of this year, and rising food prices, are also reducing the income households have available for housing." | |
| Further slowdown? | |
| The strong economy, growing employment and shortage of housing were among the factors pushing prices higher, said the lender. | |
| But it pointed to evidence that the market would slow down soon. | |
| Lenders approved fewer mortgages during the summer months, interest from new buyers has fallen for eight months in a row, and actual property sales in July were 10% lower than a year ago. | |
| Meanwhile, the higher level of interest rates has been eating into most people's take home incomes. | |
| "Prices rose by 1.6% between June and August, compared with 4.5% in the three months to March," said Mr Ellis. | |
| "Whilst the market remains robust, this provides further evidence that house price inflation has slowed since the beginning of the year." | |
| Price breakthrough? | |
| This is not the first time that a house price survey has claimed that average prices are at or near £200,000. | |
| Average UK house prices Halifax - £199,770Nationwide - £183,898DCLG - £214,222Land Registry - £181,460 | |
| The monthly survey from the Communities and Local Government department (DCLG) said UK prices passed that level last December. | |
| It takes its figures from a very large sample of all completed house sales, whereas those of the Halifax and Nationwide are taken from a sample of mortgage offers made to their own customers. | |
| The effect that different methodologies can have on the final figures is illustrated by the experience of the Land Registry for England and Wales. | |
| Its recently-introduced monthly survey of house prices, measured when they are registered with it at the end of the house buying process, says that they currently stand at £181,460. | |
| But a previous quarterly survey, now discontinued by the Land Registry, reported last year that the £200,000 mark for England and Wales was passed between July and September 2006. |