Five questions answered on the recent spurt in UK house prices

Highest annual rate since June 2010.

According to the Halifax's latest house price survey house prices in the UK have risen to the highest annual rate since June 2010 in the three months to August.

By how much have house prices risen?

In the three months to August house prices rose by 5.4 per cent compared to the same period last year, according to Halifax’s survey.

Prices were also 2.1 per cent higher than the previous period.

What about the number of mortgage approvals for house purchases?

This figure, which is an indicator for completed house sales, rose 4 per cent to 60,600 between June and July.

This is the first time that approvals have exceeded 60,000 since early 2008.

What is responsible for these rises?

It is thought the government’s Help to Buy scheme has boosted house sales. The scheme, available to both first-time buyers and people moving into a newly built home worth up to £600,000, offers a government backed loan of up to 20 per cent of the price of the property. It aims to make it easier to purchase property with a deposit of only 5 per cent.

What has Halifax said about this boost in UK house prices?

Martin Ellis, the Halifax's housing economist, said: "Overall, house prices are expected to rise gradually over the remainder of the year."

The lender added that it thought below-inflation earnings rises "are likely to act as a brake on the market".

What are the experts saying?

There is a fear the UK housing market could be headed for another property bubble.

However, there are some signs of a slow down, with Halifax reporting that prices rose 0.4 per cent in August from July, a lower rate than economists had forecast and lower than July's 0.9 per cent.

Matthew Pointon, property economist at consultancy Capital Economics, speaking to the BBC said: "A short-term imbalance between housing demand and the number of homes on the market is driving price increases.

"But the rise in wholesale interest rates seen over the past few weeks may soon start to feed through to mortgage rates, dampening demand.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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