

HOUSE prices have hit a fresh record high after values jumped in August, as values continue to shake-off forecasts of a Brexit crash.

house prices september 2017GETTY

House prices have hit a fresh record high



Lack of supply and low interest rates have helped to keep prices rising, even as affordability has been stretched.

However, demand for homes is still weak as wage growth continues to lag behind inflation. 

Price rises are likely to continue until the end of 2017, according to critics.



Chief executive of, Russell Quirk, added: “Rather than returning from the holiday period sunburnt and bleary-eyed, the UK housing market has defied the usual slower summer trends to show strong price growth on a monthly and annual basis.

"Although the same can’t be said for wage growth, mortgage rates still remain low and this, coupled with the ongoing shortage of stock and high volume of sales, should see UK house prices continue this upward trajectory heading towards Christmas.”

However, some experts have warned the market could be in for more bumps in the coming months.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: "Before we get too carried away by the numbers it is worth remembering that house-price growth is being underpinned by a shortage of supply, including housebuilding, historically low mortgage rates and relatively low unemployment, rather than strong buyer demand.

"Fewer transactions are taking place where affordability has been most stretched due to lack of new and existing stock, such as in London - and inflation higher than wage growth.

"The short-term impact of Brexit on the housing market was probably overestimated but the longer term effects may have been underestimated.
