According to the Office for National Statistics (ONS) House prices rose 0.4% in June compared to the previous month, the year on year rise now stands at 3.1% compared with 2.9% in May.
This increase outstrips price inflation (CPI) which was 2.9% in June.
Howard Archer, chief UK economist at IHS Global Insight, is quoted in the Telegraph:
Howard Archer, chief UK economist at IHS Global Insight, is quoted in the Telegraph:
House price bubbles of course will benefit the government in the run up to the election, as people (rather foolishly, given that the rise is relative) feel better off when the house that they live in rises in value."We now expect house prices to rise by at least 3pc over the rest of 2013 and to then increase by 7pc in 2014."
