New figure show that British house prices jumped 1.6% in August from July, the biggest increase since December 2006, as fewer properties came on the market. The figures came from lender Nationwide.
'Fewer second-hand properties have come onto the market than is normally the case in recessions, which has contributed to moving the balance of supply and demand more in favour of sellers over the course of 2009,' said Nationwide's chief economist Martin Gahbauer.
Mr Gahbauer said record-low interest rates had helped to support the British housing market. In March, the Bank of England slashed its key interest rate to 0.5% as it sought to soften the blow of deep recession. Rates have remained at that record low since then.
