House prices soared by 0.1 per cent in August, assisted by a deficiency of saleable houses.

The London-based Hometrack Ltd. said the average price of a house in England and Wales soared to 155,800 pounds in August. It is the first rise in the past more than
1-year period.

Now the house prices are 6.7 per cent lower as compared with last year's figures.

However, Hometrack stated that the increased prices are not the outcome of recovery but it is the result of acute supply shortages.

Increase in prices was witnessed in just 11 per cent of postcode districts of England and Wales. Rest of the country saw static house prices.

London reported 0.3 per cent gain, the biggest in the country.

The problems being faced by the UK housing market include soaring rate of joblessness and restricted lending facilities.

(Via TopNews United Kingdom. Contributed by Shamsher Singh)