Morning Forex Fundamental: GBP

Morning Forex Fundamental: GBP

'House prices continue to pick up gradually" -Martin Ellis, housing economist at Halifax

Britain's home prices soared to the highest level in almost three years, helped by low mortgage repayments, which boosted demand for property. According to the data provided by Halifax, home values gained 1.1% in April from the previous month to an average 166,094 pounds ($257,200). Year over year, prices rocketed 3.6%. The Bank of England added that the number of mortgage approvals for house purchases increased 3% between February and March following two successive monthly falls. The FLS of ‘Funding for lending scheme' was launched by the BoE and the Treasury in July 2012 aimed at boosting lending to households and businesses.

'House prices continue to pick up gradually,' said Martin Ellis, housing economist at Halifax. Still, 'weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of 2013.'

'It is hard to see how any house-price recovery can be sustained,' Matthew Pointon, property economist at Capital Economics Ltd. in London, said in a research note. 'We expect that prices will continue to mark time, with record low mortgage rates helping to prevent significant price falls, but a weakening labor market weighing down on any gains.'