U.K. house prices climb 1.7% as demand pressure persists

U.K. house prices surged for a second month in January as inflation in the property market showed no sign of easing, according to Halifax.

The average cost of a home rose 1.7 percent from December to 212,430 pounds ($311,000), the lender said in a statement Thursday. From a year earlier, prices jumped 10.4 percent.

Low interest rates and record employment are fueling demand for housing that’s outpacing new supply. The Bank of England said mortgage approvals rose in December, indicating continued buoyancy in the market.

“The imbalance between supply and demand continues to exert significant upward pressure on house prices,” Martin Ellis, an economist at Halifax, said in a statement. “This situation looks set to persist over the coming months.”

Source: Bloomberg