House Prices Up One Percent

House Prices Up One Percent.

According to the latest Nationwide property prices index, has prices in the United Kingdom in April rose by 1%.  This is the largest increase in property prices in a month since June 2014.

The rise in prices has been caused by earnings now rising faster than inflation i.e.  we have more money in our pockets as the cost of living is hardly rising yet wages are and the expected increase in interest rates has not happened as the economy has slowed down considerably.

Average Price

The average house price has risen to £193,048.  In addition, rental costs are rising as mentioned in an earlier news story on this site and we suspect that landlords and prospective landlords also making property purchases which are driving house prices up even further.

We have seen predictions that the UK property market is set to grow by at least 5% in 2015 and 2016 although London may slow down this year but bounced back next year.

Seasonal

Seasonally, we always see an increase in housing activity as we approach the summer months and we suspect a minor boom in property prices will occur for the next few months and then a slowdown as we enter autumn and winter 2015.