The report from Halifax and IHS Markit showed that the house prices in the UK rose 0.3 percent m-o-m in August after a revised 0.4 percent m-o-m increase in July (primary a drop of 0.2 percent m-o-m). That exceeded economist forecast of 0.2 percent advance.

On a three-month basis, however, the house prices edged up 0.1 percent q-o-q in three months to August.

Meanwhile, the prices in the three months to August were 1.8 percent higher than in the same period of 2018. That was higher than a revised 1.5 percent y-o-y gain in July (originally a 4.1 percent y-o-y surge). Economists expected an increase of 3.4 percent.

Russell Galley, Managing Director, Halifax, noted that there was no real shift in house prices in August as the average property value grew by just 0.3 percent month on month. “This further extends the predominantly flat trend we’ve seen over the last six months, with the average house price having barely changed since March”, he added. ““While ongoing economic uncertainty continues to weigh on consumer sentiment – with evidence of both buyers and sellers exercising some caution – a number of important underlying factors such as affordability and employment remain strong. Although the housing market will undoubtedly be influenced by events in the wider economy, it continues to show a degree of resilience for the time being. We should also not lose sight of the fact that the single biggest driver of both prices and activity over the longer-term remains the dearth of available properties to meet demand from buyers.”