UK house prices surge on lack of new homes

British house prices rose strongly in August, pushed up by a lack of property coming onto the market, according to two surveys published yesterday, adding urgency to a push by the UK government to encourage more house-building.

Mortgage lender Halifax and a group representing British property valuers said house prices in August showed their biggest monthly increase since May last year.

Prices jumped by 2.7% from July, taking the year-on-year increase to 9% in the three months to August, Halifax said.