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UK house price growth jumped to the highest level since March, according to data from the Halifax, as a lack of supply propped up the housing market since last summer's European Union referendum.
Halifax house price index showed prices increased by 1.7 percent m/m in December, up from 0.6 percent in the previous month. The three-month average of year-on-year house price growth was 6.5 percent last month, up from 6 percent prior. Prices were up 2.5 per cent on the preceding quarter. The average house price is now 222,484.
Halifax's measure is volatile and the surge in December should not be read as a positive sign for UK housing market. While there appears some momentum in the market, the underlying trend "remains significantly weaker than before the referendum".
"We believe the fundamentals for house buyers will progressively deteriorate during 2017 with consumers purchasing power weakening markedly and the labour market likely softening." said Howard Archer, an economist at IHS Global Insight.
Cable remained under intense selling pressure for the second consecutive day after comments from K Prime Minister Theresa May. The pair saw a slight rebound after hitting over two-month low following the release of better-than-expected UK Halifax House Price Index.
GBP/USD was trading at 1.2165 at around 11:20 GMT, down 0.95 percent on the day.
FxWirePro Currency Strength Index showed Hourly GBP Spot was at -60.112 (Slightly bearish) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
