Bad news for young workers, families and first time buyers – in April 2015, house prices in the UK rose by more than £100 a day. The research was released by Halifax on the 8th May and showed that the annual growth rate increased to 8.5pc, up from 8.1pc for the previous year. This took the average house price from £193,328 to £196,412 in a month.
“Housing demand is being supported by a number of factors including economic improvement, rising employment and low mortgage rates. At the same time, supply remains very tight with a general shortage of properties available for sale.”
– Martin Ellis, Halifax’s housing economist.
However, Halifax expect that the rate of increase will slow down by the end of the year.
Prices Are Rising Faster Than Earnings
Halifax also noted that house price increases were continuing to outstrip increases in average earnings, making it even harder for first time buyers to get a foot on the property ladder.
“The resulting rise in the level of house prices in relation to earnings should constrain house price growth and activity over the remainder of the year.”
Further Information & Advice
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