House price inflation in Britain accelerates

HOUSE-PRICE inflation in Britain accelerated in June for the first month in almost a year and the number of sales agreed increased to the most since September 2002, the National Association of Estate Agents said.

The average price of a home rose 8.7%, up from growth of 7.6% in the 12 months through May. It was the first acceleration since July 2002.

“The housing market had a rocky start to the year, with falling transaction volume and stagnating house prices in many areas,” said NAEA President Melfyn Williams. “Our latest survey suggests the tide is turning.’ Falling unemployment and cheap credit have helped underpin Britain’s housing market. The unemployment rate is the lowest among the Group of Seven major industrial nations.