The Pound has edged higher against the Euro and US Dollar after a report released on Friday morning showed that UK house prices have grown at their fastest annual rate in nearly three years.
According to mortgage lender Nationwide, the monthly rate of house price rises increased by 0.8% in July from the 0.3% recorded in June. The figure beat economist expectations of a 0.4% rise. On a year by year basis house prices leapt by 3.9%, the strongest annual rise since August 2010. The figure also beat forecasts of a rise of 3.1%.
“Signs of a modest improvement in wider economic conditions and further modest gains in employment are likely to be lifting buyer sentiment. An improvement in the availability and a reduction in the cost of credit, partly as a result of policy measures such as the Funding for lending and Help to Buy schemes, are also boosting demand for homes” said Nationwide’s chief economist Robert Gardner.
Adding support to the currency was news that the National Institute of Economic and Social Research believe that the UK economy will grow faster than previously expected this year. In a report released on Friday the group now expects the nation’s GDP to expand by 1.2% this year and 1.8% in 2014 beating previous forecasts of a 0.9% and 1.5% rise respectively.
“The strength of the growth appears to be due to a further robust expansion of consumer spending,” Niesr economist Simon Kirby said in the report. “Such revisions do not change the general outlook for U.K. economic growth: one of a gradual gain in economic momentum, but not to the degree that is consistent with economic recovery.”
As a result of the NIESR report the Pound rallied against the ‘Greenback’.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5153 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1461 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7040 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9271 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6599 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8722 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5870 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5190 <
(As of 10:20 am GMT)
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