UK house prices see biggest jump since 2016

UK house prices saw their biggest growth since 2016 in August, climbing to a record high, according to Britain's longest-running barometer of the property market.

The Halifax House Price Index, which is run by analysis company IHS Markit, found that UK house prices grew by 5.2 per cent in August compared to the same month last year. It marks the strongest annual growth in prices since the end of 2016, reports CNBC.

The price of the average UK house hit £245,747 ($324,241) - the first time on record that prices have surpassed £245,000. It represents month-on-month growth of 1.6 per cent from July to August, a touch higher than the 1.5 per cent growth forecasted by economists in a Reuters poll.

Russell Galley, managing director at Halifax, said the surge in property market activity had driven up house prices as coronavirus lockdown measures eased in the summer months. This had been "fuelled by the release of pent-up demand, a strong desire amongst some buyers to move to bigger properties, and of course the temporary cut to stamp duty," he said in a statement.

In July, UK Finance Minister Rishi Sunak announced a holiday from property tax, known as stamp duty, on properties worth up to £500,000 in an attempt to stimulate the housing market.