House prices continue to climb

A HIKE in the cost of borrowing in August failed to dent demand for homes, according to the latest survey from Halifax.

The mortgage lender said average prices rose 1% in August. The Bank of England put up the base rate from 4.5% to 4.75% at the beginning of August.

The increase left the annual rate of inflation at 8.2%, but the lender said the underlying picture suggested price growth was more moderate.

More from this story >>>