House prices in Britain rose strongly last month, Halifax data showed today, suggesting the Bank of England's interest rate rise at the start of August has so far done little to dampen the property market.
HBOS, the country's largest mortgage lender, said prices rose 1%t last month, leaving them 8.2% higher in the three months to August on a year ago.
The figures chime with data from rival lender Nationwide, which also reported strong house price growth last month, and boosted speculation UK interest rates will rise again before the end of the year - lifting the pound and knocking UK interest rate futures.
The Bank of England is widely expected to leave interest rates on hold at 4.75% later today but most economists expect it to raise rates to 5% in November to counter growing inflationary pressures.
HBOS said the August price rise had lifted the cost of an average home to £179,043 sterling, but played down suggestions the market was poised for further acceleration, noting the annual rate of house price inflation had eased from 8.8% in July.
