Lack of supply house, house prices in the UK Increases Sharply

House prices in the UK rose sharply in August, driven up by the lack of supply of properties entering the market, according to two survey results on Thursday, adding the reasons it needs a push by the government to trigger higher levels of construction. Halifax and group property prices in Britain said home prices in August scored the biggest monthly rise since May last year. House prices rose as much as 2.7% from July, bringing the annual increase to 9% in the three months to August, according to Halifax. The pace is faster than the annual rate of the previous month but slightly below the rate achieved in June.

Also on Thursday, the Royal Institution of Chartered Surveyors (RICS) redouble its forecast for house price increases this year to 6%, partly because of the inadequate number of new homes entering the market. As the British economy recovers from the financial crisis, house prices rose at a rate of tens of percent by the middle of last year, raised concerns at the Bank of England (BoE), before the regulation of the housing tighter credit markets ease housing sector. However, the construction can not catch the pace of population growth, house prices are still rising much faster than wages and prices of goods and services.