Annual house price inflation hits double digits - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Annual house price inflation hits double digits

Annual house price inflation hits double digits

Category: Mortgages

Updated: 29/04/2010
First Published: 29/04/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
House prices have increased by more than 10% in the last 12 months, the first time the annual rate of inflation has hit double digits for almost three years.

House prices registered a 1% month-on-month rise in April, and buyers can now expect to pay an average price of £167,802 for a UK property.

This latest increase means that over the last 12 months, house prices have gained 10.5%, the first time annual price inflation has hit 10% or more since June 2007, according to Nationwide.

"The strong rebound in house prices over the last year has taken place within the context of a subdued mortgage market, with the number of mortgage advances across the industry still well down on pre-crisis norms," commented Martin Gahbauer, chief economist at the building society.

The expansion in house prices has been driven by the low levels of stock available, rather than an influx of cash buyers into the marketplace.

"Nonetheless, there has recently been evidence of a slight shift in supply-demand balance," added Mr. Gahbauer, who also predicted a gradual levelling out of recent upward price momentum.

"While the recovery in new buyer enquiries at estate agents offices appears to have petered out, the last few months have seen an increase in the level of new instructions from sellers."

Figures show that house prices are now 10% below the peak of October 2007, while the three month on three month rate of inflation ticked down from 1.5% in March to 1.1% in April – reflecting the 1% decline of values in February.

Find the best mortgage for you - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.
 
Close