House prices continue to rise…

June 25th 2015
By: Melanie Hollidge

House prices have continued to rise in most of the UK in May despite a slight reluctance in the market due to the General Election. Prices have risen by as much as 8.6% year-on-year in the same month according to Halifax, as the amount of houses available to buy remains at an all time low – demand outstripping supply.
The average price of a house in the UK now stands at £196,067, an increase of £12,619 in one year.
The survey shows that the lack of supply continues to push the prices up, but Halifax have also stated that long-term house price performance could be less buoyant in the future due to the fact that incomes will not increase at the same rate as house prices.
Since the introduction of the new stamp duty regulations in the UK it has helped to generate growth in the housing sector; Housing economist Martin Ellis told the Daily Mail: 'Housing supply remains extremely tight with the stock of properties available for sale currently at its lowest level for many years. At the same time, ongoing economic recovery, increasing employment, real earnings growth and very low mortgage rates are all supporting housing demand.
'This combination has kept annual house price inflation well above earnings growth although activity levels are subdued.'
Consumer confidence has risen in the past 12 months with more and more people thinking that now is a good time to buy, the net proportion rose from +21 to +26 in April.
If you are considering investing in property then why not pop into your local branch of Goodfellows or give our team a call on 0845 3727070.
Source: Daily Mail