House prices across the UK are resuming an upward trend, according to the latest Nationwide and Halifax figures.
Between March and April, prices rose by 1% – the largest monthly rise since June 2014.
The annual pace of growth rose to 5.2%, the first time that this measure has risen in seven months.
The average house price is now £193,048 – the highest figure yet recorded by Nationwide and the first time prices have exceeded £190,000.
“The pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months,” said Robert Gardner, Nationwide’s chief economist.
Capital Economics said the monthly rise was “strong” and predicted that prices would rise by 6% this year.
Halifax Price Index Confirms Upwards Trend
House prices rose 1.6% last month, according to the latest survey from the Halifax, with the annual rate of increase rising slightly to 8.5%.
The increase means the average house price has risen to £196,412.
It said demand for homes was supported by the improving economy, rising employment and low mortgage rates.
At the same time, it said supply remained “very tight” with a general shortage of properties for sale.
Savills 5 Year Forecast Values
Savills are also predicting that the gains will be set to continue with predicted increases of over 20.4% in the Midlands, North & Wales and up to 25% in the south.
One of Savills spokespersons commented “It is becoming clear that the current conditions in the UK housing market are unlikely to be a temporary phenomenon. The market conditions we called ‘normality’ ten years ago will not be resumed anytime soon. The structure of the housing market has changed, if not permanently then at least for the foreseeable future.”
Royal Institution Of Chartered Surveyors (RICS)
House prices in most areas of the UK outside London and the North are still rising, according to a poll of property surveyors.
In what they call a “worrying” trend, many of them expect house prices to continue rising over the next year.
Members of the Royal Institution of Chartered Surveyors (Rics) said demand for flats and houses was currently outweighing supply.
A net balance of 21% of surveyors reported prices up in March.
In other words, those recording prices increases outnumbered those recording falls by nearly a quarter.
The surveyors were even more confident that prices will rise over the next year.
Simon Rubinsohn, Rics’ chief economist, said activity in the housing market was falling back.
“Even more worrying are the tentative signs that price momentum could be set to pick up once again, as the supply of stock to the market continues to fall,” he said.
“It is significant that price expectations nationally are accelerating both at the three and twelve-month time horizons, and at the latter, they are at their highest level since the spring of last year.”
Jordan Yaffe, one of Mayweather Estates founding directors, comments “Everything is pointing to further and sustained property price increases, over the longer term. The UK population is growing at a rate that is out stripping the supply of new properties being built. This is a perfect time to be looking to invest in the property market as tenant as demand will also continue to increase over the longer term.
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