U.K. house prices rose more than economists forecast in April as a shortfall of homes available for sale supported values.
The average cost of a home rose 1.6 percent from March, when they gained a revised 0.6 percent, mortgage lender Halifax, a division of Lloyds Banking Group, said on Friday. Economists in a Bloomberg survey forecast a 0.3 percent increase from a previous figure of 0.4 percent.
“Economic improvement, rising employment and low mortgage rates” are supporting housing demand, Martin Ellis, a housing economist at Halifax, said in the statement. “At the same time, supply remains very tight with a general shortage of properties available for sale.”
On a less volatile quarterly basis, prices rose 2.2 percent from the previous three months, to an average 196,412 pounds ($304,000). The annual increase by that measure was 8.5 percent.