UK house prices rise by 1.6% in August

Could property markets around the world be bottoming out?

Latest figures released by the Nationwide Building Society indicate house values went up by 1.6% in August. The biggest monthly increase since December 2006.

This means that the annual fall in prices has reduced down to 2.7% from 6.2 % in July.

I would say that this has been purely driven by a temporary lack of supply, rather than any sustained recovery. Nonetheless, it’s incredible to think that so soon after near financial collapse we could be seeing £50 million houses increasing in value by close to a million pounds a month.

We’ll just to have see whether this property recovery has real legs. I wouldn’t bank on it though!