House Prices Rising Faster

House Prices Rising Faster.

Figures from Halifax have shown that house prices are rising at the fastest rate in 3 years.

House prices when compared with last year are 3.7% higher, and rose at the fastest rate since 2010.

The rise in prices has been linked to the Funding for Lending Scheme (FLS) which has caused a reduction in mortgage rates and boosting the market as a result.

Our View

The UK needs a strong property market and indicators are there to confirm an upward trends.

• The government needs a strong property market to release pressure on banks, mostly part state owned, that have toxic debt.
• The Help to Buy Loan scheme will drive more buyers onto the new build market.
• The Help to Buy Indemnity scheme will encourage more lenders to enter the higher loan to value existing/already built property market.
• The population is set increase over the coming decade.
• Business confidence is up and inflation is up meaning wages will rise.

These will all be key property price drivers to house prices rising.