RTTNews - U.K. house prices rose in August for the first time since July 2007, a report published by Hometrack showed Monday.

House prices in England and Wales edged up 0.1% in August from July, which was the first increase in two years. House prices increased in August after staying flat for three consecutive months. Annually, average asking prices were down 6.7% in August, marking the slowest decline in almost a year.

By region, prices increased in London, East Anglia and the southeast of England. According to the group's director of research Richard Donnell, agents and surveyors now assess that prices can be pushed upwards without any detrimental effect on sales volume after witnessing several months of rising demand.

Donnell noted that the headline figures are being skewed by price rises that are restricted to relatively small pockets of the market suffering from a lack of housing for sale.

The fundamental obstacles to the housing market recovery such as the issues related to mortgage availability for first time buyers and rising unemployment still remain.

Other latest reports on house prices also showed increases in asking prices for property. Recent Nationwide Building Society's survey found that British house prices rose for the fourth consecutive month in August, with the index climbing 1.6%. The Land Registry revealed that house prices in England and Wales grew 1.7% month-on-month in July, the biggest monthly gain since July 2004.

But property website Rightmove reported a 2.2% month-on-month fall in British house prices in August. The monthly fall in August comes despite fresh stock scarcity.

In a report released on August 25, the British Bankers' Association said mortgage approvals hit the highest since February 2008 amid dynamic housing market activity. Accordingly, the number of mortgages approved in July totaled 38,181.

For comments and feedback: contact editorial@rttnews.com