Average house price up to £196,400

Published: Friday 8th May 2015 by The News Editor

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House prices jumped by 1.6% month on month in April as the supply of homes for buyers to choose from remains tight, Halifax has reported.

The average UK property value grew by 8.5% in the year to April, accelerating from an annual growth rate of 8.1% in March.

The month-on-month increase in house prices is the strongest seen since January, and takes the typical property value to £196,412.

The annual rate of price growth has remained at between around 8%-9% since the start of the year, and it is still well below a peak of 10.2% year-on-year growth recorded last July when the housing market was particularly heated.

Martin Ellis, a housing economist at Halifax, said: “Housing demand is being supported by a number of factors including economic improvement, rising employment and low mortgage rates. At the same time, supply remains very tight with a general shortage of properties available for sale.

“This combination has kept house price inflation steady in recent months.”

Halifax said that the pace of house price growth on a quarterly basis has slowed down slightly. House prices between February and April were 2.2% higher than they were in the preceding three months.

In March, the quarterly rate of change was recorded as being 2.6% and April’s fall to a rate of 2.2% marks the first time this year that the quarterly rate has decreased. Quarterly rates of change can often be a good indicator of the underlying trends in the housing market as they tend to smooth out any monthly volatility in the figures.

Mr Ellis continued: “House prices are continuing to increase more quickly than average earnings despite the return to real earnings growth over the past few months. The resulting rise in the level of house prices in relation to earnings should constrain house price growth and activity over the remainder of the year.

“The annual rate of house price growth is forecast to end the year at 3-5%.”

Published: Friday 8th May 2015 by The News Editor

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