House prices.

HOUSE prices edged ahead by 0.1% during August as the market continued to be supported by a shortage of homes for sale, research showed today.

The increase in England and Wales was the first recorded by property intelligence group Hometrack since July 2007, and followed three consecutive months in which prices had remained unchanged.

But the group warned that the rise did not signal a recovery in the wider housing market, instead saying the figure had been distorted by price increases in a limited number of areas where supply shortages were most acute. The annual rate at which prices are declining continued to moderate during August, dropping to 6.7%.

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