UK house prices jump as market strength persists: Halifax

LONDON, Sept 7 (Reuters) - British house prices rose sharply last month in a further sign of strong momentum in the market even after the partial withdrawal of tax breaks on property purchases, a survey from mortgage lender Halifax showed on Tuesday.

House prices rose by 0.7% in August, the biggest month-on-month rise for three months and following a 0.4% rise in July, Halifax said.

In annual terms, house price growth cooled to 7.1% from 7.6% in July, the weakest reading for five months.

The number of property purchases slumped in July when a year-long exemption from stamp duty for the first 500,000 pounds ($687,550) of a house purchase ended in England and Northern Ireland.

But other gauges of the housing market suggest the gradual expiry of the tax breaks has not resulted in a sharp slowdown.

"We believe structural factors have driven record levels of buyer activity – such as the demand for more space amid greater home working," Russell Galley, managing director of Halifax, said.

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